A manufacturing Corporation has received a request for a special order of 10,000 units of a product for $20.00 each. Product A90's unit product cost is $21.75, determined as follows:

Direct materials	$ 8.00
Direct labor (variable cost)	5.00
Variable manufacturing overhead	2.25
Fixed manufacturing overhead	6.50
Unit product cost	$ 21.75

The customer would like modifications made to the product that that would require an investment of $40,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The special order would have no effect on the company's total fixed manufacturing overhead costs. The company has ample spare capacity for producing the special order.

a) What is the annual financial advantage (disadvantage) of accepting this special order?

b) Should the company accept this special order? Why?