Special-Order Decision, Traditional Analysis, Qualitative Aspects Feinan Sports, Inc., manufactures sporting equipment, including weight-lifting gloves. A national sporting goods chain recently submitted a special order for 4,600 pairs of weight-lifting gloves. Feinan Sports was not operating at capacity and could use the extra business. Unfortunately, the order's offering price of $14.80 per pair was below the regular cost of $25. The controller was opposed to taking a loss on the deal. However, the personnel manager argued in favor of accepting the order even though a loss would be incurred; it would avoid the problem of layoffs and would help maintain the community image of the company. The full cost to produce a pair of weight-lifting gloves is presented below. Direct materials $7.40 Direct labor 3.80 Variable overhead 1.60 Fixed overhead 3.10 Variable selling and adm. 2.8 Total $18.90 No variable selling or administrative expenses would be associated with the order. Non-unit-level activity costs are a small percentage of total costs and are therefore not considered. 1. Assume that the company would accept the order only if it increased total profits. Calculate the change in profit if the order is accepted. Should the company accept or reject the order? Provide supporting computations. If required, round your answers to the nearest cent. Enter a loss as a negative amount. Incremental revenue per pair $ Incremental cost per pair Incremental gain (loss) per pair $ Total in income: $ 2. Suppose that Feinan Sports has excess capacity for only 3,600 pairs of gloves. To accept this order, it would have to give up part of regular sales. What amount of contribution margin would give up to accept this order? should the company accept the order?