Problem 7-4 For most construction projects, Elkhardt Heating and Cooling buys sheet metal and forms the metal into heating/cooling ducts as needed. The company estimates the costs of making and installing ductwork for the Kerry Park shopping mall to be as follows: Materials Labor to form ductwork Labor to install ductwork Miscellaneous variable installation costs Fixed costs allocated based on labor hours Total cost $38,120 3,780 10,280 1,470 3,050 $56,700 The fixed costs relate to the company's building, equipment, and office staff. The company plans to bill the Kerry Park developer $68,000 for services. Elkhardt is currently behind schedule on other projects and is paying a late penalty of $1,315 per day. Walt Bradley, the owner of Elkhardt Heating and Cooling, is considering ordering prefabricated ductwork for the Kerry Park job. The prefabricated ductwork will cost $44,640 (including the cost of sheet metal). If Walt buys the prefabricated ductwork, he'll be able to reassign workers to another project and avoid five days of late fees. Should Elkhardt make the ductwork or buy it prefabricated? the prefabricated ductwork. Net incremental of buying will be $ Elkhardt should Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT Question Attempts: 0 of 3 used