Sanders Automotive Company manufactures an engine designed for motorcycles and markets the product using its own brand name. Although Sanders has the capacity to produce 28,000 engines annually, it currently produces and sells only 25,000 units per year. The engine normally sells for $400 per unit, with no quantity discounts. Variable costs per engine include direct materials, $150; direct labor, $100 and $30 for variable manufacturing overhead. Sanders expects total annual fixed manufacturing overhead (rent, salaries, depreciation, etc.) to be $1,250,000.

Sanders receives a special order request from a new customer seeking to buy 1,000 engines at $300 each. Should Sanders accept or reject the special order? Justify your answer.