[CPA Adapted] Mike Products sells product A at a selling price of $40 per unit. Mikes cost per unit based on the full capacity of 500,000 units is as follows:

Direct materials $ 6

Direct labor 3

Indirect manufacturing (60% of which is fixed) 10

$19

A one-time-only special order offering to buy 50,000 units was received from an overseas distributor, but they only willing to pay $20 per unit. Other costs that would be incurred on this order would be $4 per unit for shipping. Mike has sufficient existing capacity to manufacture the additional units. Should Mike accept the order? Explain your answers and provide numbers to back it up.