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Mystical Corporation manufactures a single product with the following unit costs for 5,000 units: Direct materials $ 60 Direct labor 30 Factory overhead (40% variable)

Mystical Corporation manufactures a single product with the following unit costs for 5,000 units:

Direct materials

$ 60

Direct labor

30

Factory overhead (40% variable)

90

Selling expenses (60% variable)

30

Administrative expenses (20% variable)

15

Total per unit

$225

Recently, a company approached Mystical Corporation about buying 1,000 units for $225. Currently, the models are sold to dealers for $412.50. Mystical's capacity is sufficient to produce the extra 1,000 units. No additional selling expenses would be incurred on the special order.

Question: Suppose the special order is for 2,000 units in total, should mystical accept the special order?

Please reply asap.

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