Karen's Kitchenware produces kitchen utensils sold to department stores for $10 each. The plant capacity is 1,500,000 units annually, but normal volume is 1,000,000 units. Unit and total costs at normal volume are:

Type of Cost	Unit Costs	Total Costs
Direct materials	$3.00	$3,000,000
Direct labor	$2.00	$2,000,000
Manufacturing support	$3.00	$3,000,000
Selling and administrative	$1.50	$1,500,000
Total costs	$9.50	$9,500,000

Fixed manufacturing support costs are $2,500,000, and fixed selling and administrative costs are $1,000,000.

A wholesale customer offers to purchase 200,000 units at $8 each, with simplified packaging reducing variable selling and administrative costs by 60%.

Required: Evaluate if Karen's Kitchenware should accept the special order. Prepare a cost-volume-profit analysis to support your decision