Riffa Sports Inc. manufactures basketballs for the National Basketball league in Kingdom of Bahrain . For the first 6 months of 2021, the company reported the following operating results while operating at 80 % of plant capacity and producing 120,000 units.

Sales $ 4800000

Cost of Goods Sold $ 3600000

Selling and administrative expenses $ 405000

Net income Amount $795000

Fixed costs for the period were $960,000 , and the fixed selling and administrative expenses $ 225,000.

In July, normally a slack manufacturing month, Riffa Sports receives a special order for 10,000 basketballs at $27 each from the Greek Basketball Association (GBA) Acceptance of the order would increase variable selling and administrative expenses of $0.50 per unit because of shipping costs but would not increase fixed costs and fixed expenses .

Required:

(a) What is the financial advantage (disadvantage) of accepting the special order from the Greek Basketball Association (GBA) ? (b) Should Riffa Sports Inc. accept the special order ? Explain your answer.

(c) Advise to the management what resources are considering for accepting special orders?