Steven Garcia operates a small machine shop. He manufactures one standard product that is also available from many other similar businesses, and he also manufactures deluxe products to order. His accountant prepared the following annual income statement Deluxe Sales $59,000 Total Standard Sales $29.500 Sales $88,500 Costs Material 11.800 9,440 21.240 Labour 23,600 10,620 34.220 Depreciation 7.434 4.248 11,682 Power 826 472 1.298 Rent 7.080 1,180 8,260 Heat and light 708 118 826 Other 472 1,062 1.534 51.920 27,140 79,060 Total costs Net income $7,080 $2.360 59.440 The depreciation charges are for machines used in the product lines. The power charges apportioned based on an estimate of the power consumed by each line. The rent is for the building space, which has been leased for 10 years at $8.260 per year. The rent and the heat and light costs are apportioned to the product lines based on the amount of floor space occupied by each line. All other costs are current expenses that are identified with the product line causing them. A valued customer has asked Mr. Garcia if he would manufacture 5.900 of the del products for him McGarcia is working at capacity and would have to give up some other business in order to take this order. He cannot cancel del orders he has already agreed to, so he would have to reduce the output of his standard product by about one-half for a year while producing the requested deluxe product. The customer is willing to pay $7.00 for each unit. The material cost will be about $2.00 per stand the Labour will be $3.60 per unit. Mr. Garcia will have to spend $2.360 for a special device that will be discarded when the job done. (a) Calculate the incremental cost of the order. Incremental cost of the order $