Although the excess capacity is currently costing Whitewater $40,000 annually, having excess capacity allows for the company to accept special orders if they are received, expand production of either of the existing models, or add a new product line in the future. Whitewater should consider if there is available labor and machine hours before increasing production to use the space, as well as demand for the product. Whitewater may also consider renting out the available space to a compatible outside user, with the option to take the space back if needed.