Big Sky Farms sells gift baskets containing a variety of fruits and nuts for $$60$ each. Tanya Williams contacted Big Sky Farms to see if

they would be willing to provide $150$ gift baskets for a special price of $$40$ per basket. Big Sky Farms has the capacity to make $1,090$

gift baskets and is presently working on $500$ of them. Big Sky Farms estimates the cost of a gift basket to include unit$-$level materials,

$$12$; unit$-$level labor, $$8$; and an allocated portion of facility$-$level overhead, $$15.$

Required:

Calculate the contribution to profit from the special order. Should Big Sky Farms accept or reject the special order to sell $150$ gift

baskets for $$40$ each?

Contribution to profit

Should Big Sky Farms accept or reject the special order?