Kneller Co. manufactures and sells medals for winners of athletic and other events. Its manufacturing plant has the capacity to produce 20,000 medals each month; current monthly production is 10,000 medals. The company normally charges $112 per medal. Cost data for the current level of production are shown below:

Variable costs:
Direct materials	$	542,900
Direct labor	$	173,800
Selling and administrative	$	28,200
Fixed costs:
Manufacturing	$	162,700
Selling and administrative	$	89,000

The company has just received a special one-time order for 500 medals at $94 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?

a. Accepted

b. Not accepted