Wilmington Chemicals produces a chemical,

PX44, which is used to retard fading in exterior house paint. In the past year, the company produced

200,000 gallons at a total cost of $1,200,000 ($6 per gallon). The company is currently considering

an order for 15,000 gallons from a paint company in Canada. (To date, Wilmington has

not sold the product in markets outside the United States.) Explain why the incremental cost

associated with this order is likely to be less than $90,000.