Hadley Company has received a special order request for Product R3P at a selling price of $20 per unit. This order is over and above normal production,

and budgeted production and sales targets for the year have already been exceeded. Capacity exists to satisfy the special order. No selling costs will be incurred in connection with this order.

Unit costs to manufacture and sell Product R3P are as follows: direct materials, $7.60; direct labor, $3.75; variable overhead, $9.25; fixed overhead, $4.85; variable selling costs, $2.75, and fixed general administrative costs, $6.75.

Should Hadley accept the order?

$ 7.60

$ 3.75

$ 9.25

$ 4.85

$ 2.75

$ 6.75

$ 34.95