Arnold Vehicle has been approached by a customer with an offer to purchase 10,000 units of a certain spare part at a price of $22,000 per unit. Arnold Vehiclesother sales would not be affected by this new customer offer. Arnold Vehicle normally produces 100,000 units of the spare part per year but only plans to produce and sell 90,000 in the coming year. The normal sales price is $45,000 per unit. Unit cost information for the normal level of activity is as follows:

• - Direct materials $12000

• - Direct labor $3000

• - Variable overhead $5000

• - Fixed overhead $10000

Required:

Should the Arnold Vehicle accept this new offering? Provide calculation to support the decision that will be made