Omaha Wire produces $2\mathrm{.}5-$gauge barbed wire that is sold to farm supply companies. Currently the company has capacity to produce $100,000$ tons of wire per year.

It is operating at $80\%$ of annual capacity. The cost per ton of wire is as follows:

The average sales price is $$900$ per ton. The state of Nebraska has approached the company to supply $200$ tons for the states prisons for $$670$ per ton.

If the special order is accepted, calculate the specific change in income for only the special order. Make sure you show your work and explain what the relevant costs are for the special order.

Provide a recommendation to management if the company should accept or reject this special order. Explain in detail your recommendation to management including the change to income that applies to the special order.