Hawk Rollers Company produces skateboards. Each skateboard has the following costs: Direct materials $8 Direct labor 6 Variable manufacturing overhead 7 Allocated fixed manufacturing overhead* 4 Unit cost $25 *The fixed manufacturing overhead is common to the company. The production capacity is 350,000 units per year. However, Hawk Rollers expects to produce only 250,000 units for the coming year. The company also has fixed selling costs of $600,000 per year and variable selling costs of $2 per unit sold. Each skateboard normally sells for $35 each. Recently, a customer offered to buy 50,000 skateboards at special price of $24 each. This order would not have any variable selling costs because no sales commissions are involved.

a) Based on a quantitative analysis, should the company accept the special order?

b) What qualitative factors may impact the above decision?