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:

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.