Mission Electronics manufactures and sells basic DVD players under various generic store brand names. The cost of one of their models follows:

Materials		$	18.00
Labor			12.00
Variable overhead			5.00
Fixed overhead ($2,700,000 per year; 450,000 units per year)			6.00
Total		$	41.00

Pacific Cash & Carry, a chain of low-price electronic sales and rental outlets, has asked Mission to supply them with 30,000 players for a special promotion Pacific is planning. Pacific has offered to pay Mission a unit price of $42 per DVD player. The regular selling price is $60. The special order would require some modification to the basic model. These modifications would add $4.00 per unit in material cost, $1.50 per unit in labor cost, and $0.50 in variable overhead cost. Although Mission has the capacity to produce the 30,000 units without affecting its regular production of 450,000 units, a one-time rental of special testing equipment to meet Pacific