Pear has been selling iPears (an advanced cellphone) for nearly a decade across Canada and USA. They have been able to sell 100% of their capacity (300,000) for iPears successfully through their in-store locations and resalers. Recently, the COVID-19 pandemic has caused multiple fewer foot traffic for their instore locations. As a result, Pear has experienced a decline in sales down to 250,000 iPears, which they think may be temporary until the effects of the pandemic have ended. Pear has been approached by a wholesaler based out of Australia, Grapple, to purchase an additional 75,000 iPears with no long time commitment required. This order would not incur the regular variable selling costs as a result of the one-time purchase. Below is the cost analysis on the chairs based on 300,000 iPears which normally sell for $500 each.

	Cost per chair
Direct Materials	$144.00
Direct Labour	$63.00
Manufacturing Overhead (40% variable)	$30.00
Sales Commissions	$25.00
Fixed Selling Variable Administration	$3.00 $22.00
Fixed Administration	$122.00
Total Costs	$409.00

Instructions:

Should the offer be accepted at a 40% discount on the sales price? What is the net CM difference if the offer is accepted?