Fanning Company manufactures a personal computer designed for use in schools and markets it under its own label. Fanning has the capacity to produce 45,000 units a year but is currently producing and selling only 14,000 units a year. The computers normal selling price is $1,670 per unit with no volume discounts. The unit-level costs of the computers production are $510 for direct materials, $260 for direct labor, and $140 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Fanning during the year are expected to be $2,200,000 and $804,000, respectively. Assume that Fanning receives a special order to produce and sell 3,020 computers at $1,230 each.

1) Calculate the contribution to profit from the special order.

2) Should Fanning accept or reject the special order?