A local manufacturer has been approached to supply a special order for 500 vases at a price = $20 per vase. The current production per unit product cost of the vase includes: direct material = $10, direct labour = $8, variable overhead = $5 & allocated fixed overhead = $3. The allocated fixed overhead relates to factory rent that would be incurred regardless of whether the special order is accepted or not. The business has sufficient spare capacity to produce the order. From a quantitative point of view, should they accept the order?

Group of answer choices

No, as the selling price ($20) is less than the full product cost per unit ($26).

Yes, as long as the customer pays on time.

Yes, as the selling price ($20) is greater than the direct material and direct labour cost ($18).

No, as the selling price ($20) is less than the total relevant cost ($23) based on direct material cost + the direct labour cost + the variable overhead cost.