1. J&J Company produces modem ZYXEL model for home internet connection. The company has been recognized as the best modem producer in the country. Therefore, J&J Company has received a special order from Brother Inc. for 1,200 units modems at $500 per modem. Its manufacturing plant has the capacity to produce 13,200 units modem each month. With 12,000 units modem of current production and sales per month, J&J Company normally sets $550 selling price per unit. The following is the cost information for the current activity level: Variable costs: Direct materials Variable costs (for setups, materials handling, and quality control) Direct manufacturing labor 1,000 x $250 per dozen* Fixed costs: Fixed manufacturing costs Fixed advertising costs $ 552,000 480,000 250,000 450,000 375,000 $2,107,000 Total costs *Per dozen is 12 units modem Required: Should J&J Company accept this special order? Show your calculations! (5 Points)