AB Ltd makes a single product which sells for Rs 20. There is great demand for this product. The unit variable cost of Rs 12 shows the following details:

per unit

Rs

Direct material 4

Direct labour

(2 hours) 6

Variable overheads 2

Total 12

The labour force is currently working at full capacity and no extra time can be made available. A customer has approached AB Ltd with a request for the manufacture of a special order, for which he is willing to pay Rs 5,500. The costs of the order would be Rs 2,000 for direct materials, and 500 labour hours will be required. Should the order be accepted?