1) Given the following data for Tan Company

Sales (in units) 60,000

Selling price per unit 28

Manufacturing costs per unit:

Materials 5

Direct labor 4

Overhead

Variable 4

Fixed 10

Total 23

Gross margin 5

Selling and admin. Expenses per unit 2

Operating income 3

A company in a foreign market offer to buy and the offer specifies the

following data

Units to be sold 10,000

Price per unit 13.10

Should the company sell thus special order?