Abeer Kalaba is the owner of a Champion Chips Pty Ltd, which produces communication chips for mobile phones. The company has two production lines, one for a standard communication chip that is also produced by several competitors and one for custom communication chips built to customer specifications. Financial results of the company for the previous year are as shown below.

	Custom chips			Standard chips				Total
Sales		$150000			$110000				$260000
Direct materials Direct labour Rent Depreciation Electricity Other fixed manufacturing costs		24600 48000 12400 15100 1800     4400			28800 32500 3600 10 500 450     1080				53400 80500 16000 25 600 2250     5480
		106 300			$76 930				183 230
Profit		$  43 700			$33 070				$  76 770

The building has been leased for 10 years at $22000 per year. The rent, electricity, and other fixed manufacturing costs are allocated based on the amount of floor space occupied by each production line. Depreciation is specifically allocated to the machines used on each line.

Abeer recently received an order from one of his best customers to produce 5000 custom-built communication chips and is trying to decide whether he should accept the order. His company is currently working at full capacity and is required by contract to produce all specialty orders already received. He could reduce the production of standard chips by a third for the next year to accept the new special order. The customer has offered to pay $24.00 per chip with the new order. The direct costs will be $16 per chip, and Abeer will have to buy a new tool costing $20000 to produce the custom-built chips. The tool will be scrapped when this order has been delivered.

Required

Should Abeer accept the order? In your answer, identify the unavoidable costs, differential revenues and costs, and opportunity costs.