Armand Leggitt Company manufactures table legs and chair arms. It owns a lathe that it is not currently using. The lathe, which Armand Leggitt purchased nine years ago for \(\$ 40000\), has a current book value of \(\$ 4000\). Armand Leggitt can get \(\$ 4800\) for the lathe if it sells it now.

Armand Leggitt has just received an order for 50000 table legs; it cannot accept the order unless it keeps the lathe for use in producing the order. If Armand Leggitt keeps the lathe for this purpose, the lathe will have no residual value after the company completes the order. The direct materials, direct labour and variable overhead costs that Armand Leggitt would incur to produce the order total \(\$ 49900\). The customer has offered \(\$ 55000\) for the table legs.

Required:

Prepare a schedule to help Armand Leggitt Company determine whether it should accept the order for the table legs.