1. Lifan manufacturing company has annual plant capacity of production of 2,400 units. Its current annual capacity utilization has the following results:

Production & sales of 2,000 units .. $180, 000

Manufacturing costs:

• Total fixed costs .$60, 000
• Total variable costs ...$52,000

Selling & administrative express:

• Total fixed . $30,000
• Total variable ..$20,000

Instructions: Merkato Trading Company offers a special order for 300 units at a selling price of $40 per unit. Should lifan manufacturing company accept the offer? Support your answer with appropriate analysis.