1. The James Company manufactures widgets that sell for $120 each. The company's unit cost for each widget is as follows:

Direct Materials				$ 30
Direct Labor				$ 40
Variable Manufacturing Overhead				$ 10
Fixed Manufacturing Overhead				$ 20
				=
Per Unit Cost				$ 100

A company in another state has offered to purchase 1,000 widgets from James Company at a cost of $90 each. If they were to accept this special order, no additional Fixed Manufacturing Overhead costs would be incurred. Should the James company accept this special order? Show relevant calculations.