Kneller Co. manufactures and sells medals for winners of athletic and other events. Its manufacturing plant has the capacity to produce 23,000 medals each month; current monthly production is 10,000 medals. The company normally charges $82 per medal. Cost data for the current level of production are shown below:

Variable costs:
Direct materials	$	397,500
Direct labor	$	127,200
Selling and administrative	$	20,600
Fixed costs:
Manufacturing	$	118,800
Selling and administrative	$	65,000

The company has just received a special one-time order for 400 medals at $63 each. For this particular order, no variable selling and administrative costs would be incurred. This order would also have no effect on fixed costs. Assume that direct labor is a variable cost.

Required:

Should the company accept this special order?

• Accepted

• Not accepted