ZBAR has the capacity to produce up to 25,000

units without incurring any additional fixed costs. The current selling price is $ 5.00

per dispenser. Management estimates variable costs per unit to be $ 2.00

Monthly fixed costs grow slightly from year to year but are currently around $ 35,000

Marathon Distributors, not a normal customer, has approached ZBar to buy 3,500

dispensers next month on a “white label” basis for a per unit price of $ 4.10

Prepare the incremental analysis that ZBar should use to evaluate this offer.

You may assume that none of ZBAR's current customers are affected.

Per Unit Total Order

1 Incremental Revenues are: ??? ???

2 Direct production costs are: ??? ???

3 Incremental costs not included

in your answer to Q10 are: ??? ???

(may be zero)

4 Opportunity costs are: ??? ???

(may be zero)

5 Net Profits for the special order

are estimated to be: ??? ???