FURY produces and sells skateboards. Its contribution margin income statement follows.

Contribution Margin Income Statement
For Year Ended December 31	Per Unit	Annual Total
Sales (86,000 units)	$ 56.00	$ 4,816,000
Variable costs
Direct materials	26.00	2,236,000
Direct labor	7.00	602,000
Variable overhead	13.00	1,118,000
Contribution margin	10.00	860,000
Fixed costs
Fixed overhead	3.00	258,000
Fixed general and administrative	2.00	172,000
Income	$ 5.00	$ 430,000

A potential customer offers to buy 10,600 units for $48.00 each. These sales would not affect the companys sales through its normal channels. Details of the special offer follow.

• Variable costs per unit would not change.
• Accepting the offer would require incremental fixed overhead costs of $10,600.
• Accepting the offer would require incremental fixed general and administrative costs of $15,900.

Required: 1. Compute income or loss from the special offer. 2. Should the company accept or reject the special offer?