Narra company manufactures different designs of love seats. At the start the company built a large plant with the expectation that the demand for its product will increase once the market is developed. However, at present, the company utilizes only 70% of its plant capacity. The account executive received an offer from the large motel chain to purchase150 units of love seats for a price of 950. Normal selling price for these seats is 1,500 each. Manufacturing costs for the current periods production of 350 love seats are presented below. Fixed costs is expected to be unchanged with the acceptance of the order.

Production cost for 350 units

Maretials 122,500

Labor 105,000

Factory overhead (40% fixed) 140,000

The account executives commission for this order is 20%. Should the order be accepted? And will your answer change if the account executives commission is computed at 100 per love seat?