Blackstone Corporation manufactures faucets. Several weeks ago, the firm received a special-order inquiry from Stan, Inc. Stan desires to market a faucet similar to Blackstone's model no. 55 and has offered to purchase 3,000 units. The following data are available: Cost data for Blackstone's model no. 55 faucet: direct materials, $45; direct labor, $30 (2 hours at $15 per hour); and manufacturing overhead, $70 (2 hours at $35 per hour). The normal selling price of model no. 55 is $180; however, Stan has offered Blackstone only $115 because of the large quantity it is willing to purchase. Stan requires a modification of the design that will allow a $4 reduction in direct-material cost. Blackstone's production supervisor notes that the company will incur $8,700 in additional set-up costs and will have to purchase a $3,300 special device to manufacture these units. The device will be discarded once the special order is completed. Total manufacturing overhead costs are applied to production at the rate of $35 per labor hour. This figure is based, in part, on budgeted yearly fixed overhead of $624,000 and planned production activity of 24,000 labor hours. Blackstone will allocate $5,000 of existing fixed administrative costs to the order as "...part of the cost of doing business." Required: Currently Blackstone manufactures 18000 units of model no. 55 and has a total capacity of 22000 units. Should the order be accepted