The Engine Guys produces specialized engines for "snow climber" buses. The company's normal monthly production volume is 4,500 engines, whereas its monthly production capacity is 9,000 engines. The current selling price per engine is $850. The cost per unit of manufacturing and marketing the engines at the normal volume is as follows: Manufacturing costs: Direct materials Direct labour Variable overhead. Fixed overhead Costs per Unit for Engines $ 90 136 25 136 Subtotal $387 Marketing costs: Variable $42 Fixed 94 Subtotal Total unit cost 136 $523 Required: Answer the following independent questions. 1-a. The Provincial Bus Company wishes to purchase 650 engines in October. The bus company is willing to pay a fixed fee of $540,000 and reimburse The Engine Guys for all manufacturing costs incurred to manufacture 650 motors, October is a busy month for The Engine Guys, and there are sufficient orders to operate at 100% capacity utilization. There will be no variable marketing costs on this government contract. Compute the incremental benefit of the contract. Incremental benefit of the contract