Howe Tie Company manufactures ties. When 18,000 items are produced, the costs per unit are:

Direct materials $0.60

Direct manufacturing labor 3.00

Variable manufacturing overhead 1.20

Fixed manufacturing overhead 1.60

Variable selling 0.80

Fixed selling 1.13

Total $8.33

The ties normally sell for $13 each. Howe Tie Company has received a special order for 2,000 ties at $6.00 per tie. Howe Tie Company has excess capacity.

- Should the order be accepted? Why?