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Ivanhoe Ltd. incurs the following costs to make each custom-made shelf: materials of $12, labour...

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Accounting

Ivanhoe Ltd. incurs the following costs to make each custom-made shelf: materials of $12, labour of $14, variable overhead of $5, and fixed overhead of $4. Each shelf normally sells for $51. A customer is offering to buy 1,800 units at $36 each. Ivanhoe will incur additional costs of $2 per shelf to imprint a logo and to pay for shipping.
(a) Prepare an incremental analysis for the special order.
(b) Should Ivanhoe accept the special order?
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