Mustang Company sells product A for $21 per unit. If Mustang operates at full production capacity of 200,000 units, its manufacturing cost per unit are as follows:

Direct materials	$4.00
Direct labor	5.00
Overhead, 2/3 of which is fixed	6.00
Total	$15.00

A special order for 20,000 units was received from a foreign distributor. The foreign distributor offered $14.50 per unit. The only selling costs on this order would be $3.00 per unit for shipping. Mustang has sufficient capacity to manufacture the additional units. Fixed overhead costs would not be affected if the special order is accepted.

Question 1: Compute the gain or loss if the customer's offer is accepted.

Question 2: Calculate the price per unit at which the special order would generate a $20,000 profit before taxes. (hint- incremental costs will stay the same as in question 1)