JART manufactures and sells underwater markers. Its contribution margin income statement follows.

Contribution Margin Income Statement

For Year Ended December $31$ Per Unit Annual Total

Sales $(550,000$ units$)$ $ $7\mathrm{.}00$ $ $3,850,000$

Variable costs

Direct materials $1\mathrm{.}59874,500$

Direct labor $0\mathrm{.}41225,500$

Variable overhead $0\mathrm{.}90495,000$

Contribution margin $4\mathrm{.}102,255,000$

Fixed costs

Fixed overhead $0\mathrm{.}20110,000$

Fixed general and administrative $0\mathrm{.}1582,500$

Income $ $3\mathrm{.}75$ $ $2,062,500$

A potential customer offers to buy $65,000$ units for $$3\mathrm{.}70$ each. These sales would not affect the company$$s sales through its normal channels. Details about the special offer follow.

Direct materials cost per unit and variable overhead cost per unit would not change.

Direct labor cost per unit would be $$0\mathrm{.}59$ because the offer would require overtime pay.

Accepting the offer would require incremental fixed general and administrative costs of $$6,500.$

Accepting the offer would require no incremental fixed overhead costs.

Required:

Compute income from the special offer.

Should the company accept or reject the special offer?