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Glade Company produces a single product. The cost of producing and selling one unit at the current activity level of 8,000 units per month is

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Glade Company produces a single product. The cost of producing and selling one unit at the current activity level of 8,000 units per month is as follows: Direct materials $2.50 Direct labour $3.00 Variable manufacturing overhead $0.50 Fixed manufacturing overhead $4.25 Variable selling and administrative expenses $1.50 Fixed selling and administrative expenses $2.00 The normal selling price is $16 per unit and the monthly capacity is 10,000 units. An order has been received from an overseas customer for 1,500 units at a price of $12 per unit. No additional costs will be incurred to meet this order. Should this order be accepted? (Answer and show workings here]

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