The Ontario Inc. has an annual plant capacity of 25,000 units. Predicted data on sales and costs are given below.

Sales (20,000 units @ $50) $1,000,000

Manufacturing costs:

Variable (materials, labor, and overhead) $40 per unit

Fixed overhead $30,000

Selling and administrative expenses:

Variable (sales commission-$1 per unit) $2 per unit

Fixed Cost $7,000

A special order has been received from outside for 4,000 units at a selling price of $50 each.

This order will have no effect on regular sales. The usual sales commission on this order will be decreased to .

Required:

Suggest if the company accept the order? Show supporting computations.