AyayaiCompany is a leading manufacturer of sunglasses. One ofAyayai's products protects the eyes from ultraviolet rays. An upscale sporting goods store has contactedAyayaiabout purchasing30,000pairs of these sunglasses.Ayayai's unit manufacturing cost, based on a full capacity of255,000units, is as follows:

Direct materials$8Direct labor6Manufacturing overhead (75% fixed)20Total manufacturing costs$34

Ayayaialso incurs selling and administrative expenses of $75,500plus $4per pair for sales commissions. The company has plenty of excess manufacturing capacity to use in manufacturing the sunglasses.Ayayai's normal price for these sunglasses is $44per pair. The sporting goods store has offered to pay $30per pair. Since the special order was initiated by the sporting goods store, no sales commission will be paid.