The company currently makes only the "CJE-27" jet engine. For 2020, the company projects the following results from sales of 46 jet engines:

Sales ($1,000,000 per unit)	$46,000,000
Less costs and expenses:
Direct materials ($260,000/unit)	11,960,000
Direct labor ($150,000/unit)	6,900,000
Variable overhead ($30,000/unit)	1,380,000
Fixed overhead ($81,000/unit)	3,726,000
Variable administrative ($45,000/unit)	2,070,000
Fixed administrative ($34,000/unit)	1,564,000
Total costs and expenses	27,600,000
Operating income	$18,400,000

A foreign airline wants to purchase 10 engines. However, the airline is willing to pay only $575,000 per engine for this one-time order. The airline also agrees to pay all freight costs. To fill the order, Camino Jet Engines will incur normal production costs. To complete this new order, the company's total fixed overhead will have to be increased by $350,000 to pay for equipment rentals and insurance. No additional administrative costs (variable or fixed) will be incurred in association with this special order.

Required:

1. Calculate the incremental cost to produce the additional 10 engines given that Camino Jet Engines has excess capacity.
2. Should the company produce the new engines for this foreign airline?

Show your answers and calculations