. 1) Keller Co. manufactures and sells medals for winners of athletic and other events. Its manufacturing plant has the capacity to produce 12,000 medals each month; current monthly production is 9,600 medals. The company normally charges $99 per medal. Cost data for the current level of production are shown below:

	Variable costs:
	Direct materials..........................	$480,000
	Direct labor.................................	$153,600
	Selling and administrative..........	$24,960
	Fixed costs:
	Manufacturing............................	$144,000
	Selling and administrative..........	$78,720

The company has just received a special one-time order for 500 medals at $89 each. For this particular order, no variable selling and administrative costs would be incurred. This order would also have no effect on fixed costs.

Should the company accept this special order? Why?