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How do I calculate the differential costs for this question:

Unter Components manufactures low-cost navigation systems for installation in ride-sharing cars. It sells these systems to various car services that can customize them for their locale and business model. It manufactures two systems, the Star100 and the Star150, which differ in terms of capabilities. The following information is available.

Costs per unit: Star 100 Star150

Direct materials: $130 $150

Direct labor: 60 80

Variable overhead:30 40

Fixed overhead: 180 240

Total cost per unit: $400 $510

Price: $580 $780

Units sold: 4,000 2,000

The average wage rate is $40 per hour. Variable overhead varies with the quantity of direct labor-hours. The plant has a capacity of 20,000 direct labor-hours, but current production uses only 10,000 direct labor-hours.

Required:

a-2.Complete the following table to determine the differential profit increase (or decrease) if Unter accepts this proposal.Prices on regular sales will remain the same.

A nationwide car-sharing service has offered to buy 2,500Star100systems and 2,500Star150systems if the price is lowered to $400 and $500, respectively, per unit.

A2. Complete the following table to determine the differential profit increase (or decrease) if Unter accepts this proposal.Prices on regular sales will remain the same.

Differential Revenues

Star100: 100,000

Star150: 1,250,000

Differential Costs:

Star100:

Star 150:

Differential Profit (loss)

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