Say Company A has capacity to produce 100,000 units of product X. The cost estimate per unit based on current capacity of 80% is as follows:

$ Per unit

Direct material $2.00

Direct labor $5.00

Variable production overhead $3.00

Fixed production overhead $4.00

Total $14.00

The company sells the product X to its regular customer at $20.00. However, a non- regular customer has approached the company to purchase the excess capacity at $18 each.

Required

Should Company A accept this special order?