: A company is producing, on average, 10,000 units of product A per month despite having 30% more capacity. Costs per unit of product A are as follows: (Marks 4.5)

Direct Material $8.00

Direct Labor 5.00

Variable Factory Overhead 2.00

Variable Selling Expense 0.50

Fixed Factory Overhead 3.00

Fixed Office Expense 2.00

$20.50

The company received a special order of 2,000 units of product A at $17.00 per unit from a new customer. Should the company accept the special order, provided that the customer has agreed to pay the variable selling expenses in addition to the price of the product?