TGM produces longboards, a popular type of skateboard. The company received a special-order request from SkateMart. SkateMart would like to purchase 12,000 A-10C Thunderbolt boards if the order can be fulfilled by next summer. Cost data for the A-10Cs follows: $80.50 $24.00 Direct Materials Direct Labor ( 2 hours at $12.00/hour) Total Manufactoring Overhead 0.4 machine hours at $60/machine hour Total Cost $24.00 $128.50 Total manufacturing overhead costs are applied to production at the rate of $60 per machine hour. This figure is based, in part, on budgeted yearly fixed overhead of $1,500,000 and planned production activity of 75,000 machine hours. Additional Information: a The normal selling price of model A-10Cs is $169.50; however, SkateMart has offered TGM only $130.75 because of the large quantity it is willing to purchase. SkateMart requires a modification of the design that will allow a $5 reduction in direct- material cost. TGM's production supervisor notes that the company will incur $68,000 in additional setup costs and will have to purchase a $24,000 special device to manufacture these units. The device will be discarded once the special order is completed. Should TGM accept the offer from Skate Mart? Why or why not? [To earn full or partial credit show all of your work.]