Stuart Company manufactures a personal computer designed for use in schools and markets it under its own label. Stuart has the

capacity to produce $41,000$ units a year but is currently producing and selling only $15,000$ units a year. The computer's normal selling

price is $$1,780$ per unit with no volume discounts. The unit$-$level costs of the computer's production are $$450$ for direct materials, $$210$

for direct labor, and $$150$ for indirect unit$-$level manufacturing costs. The total product$-$ and facility$-$level costs incurred by Stuart during

the year are expected to be $$2,250,000$ and $$803,000,$ respectively. Assume that Stuart receives a special order to produce and sell

$3,090$ computers at $$1,280$ each.

Required

Calculate the contribution to profit from the special order. Should Stuart accept or reject the special order?

Contribution to profit

Should Stuart accept or reject the special order?