Mars Corporation received a request from a customer to purchase 2,300 units of one of their products, if Mars will customize it to fit their specific needs. To customize it, Mars' variable overhead costs will increase by $1.80 per unit. The customer has offered to buy it at a price of $37 per unit. This product, without customization, has the following costs:

	Unit Cost
Direct materials	$4.70
Direct labor	$3.00
Fixed overhead	$6.70
Variable overhead	$1.80

Mars has enough capacity to produce these customized units, but will have to purchase a new machine to complete production. This machine will cost $17,000 and will be sold after production for $2,000. The incremental profit (loss) associated with decision is (incremental losses are indicated by a negative (-) sign):

Garrison 16e Rechecks 2017-12-15

Multiple Choice

• -44,110

• 43,700

• -28,700

• 44,110

• 28,700