5. Floral Company manufactures and sells a single product called Gizmo. Operating at capacity, the company can produce and sell 30,000 Gizmos per year. Costs associated with this level of production and sales are given below: Unit $15 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per unit The Gizmo normally sells for $45 each. Fixed manufacturing overhead is constant at $270,000. Due to the recession this year, Floral Company expects to produce and sell only 22,000 Gizmos. A large retail chain has offered to purchase 5,000 Gizmos at $30 per unit. It will require the company to print their logo on Gizmos, which will incur extra $1 per unit of variable cost. What is the company's change in profit if the special order is accepted? Should they accept or reject the special order? Page 2 of 2