The XYZ company has received an order from an "unusual" customer who requests the supply, in the next two months, of a specific product. As the company has available production capacity, it could supply the aforementioned order, as long as it rented certain machinery for 75,000/month. The order in question has the following characteristics: 1.- Order of 10,000 units 2.- Offer given by the client 1,800,000

The company's cost structure for the product in question is as follows:

Raw material 500,000

10,000 u. x 50/u.

Direct labor 600,000

3,000 H-MOD x 200/ H-MOD

Variable Overhead Expenses 300,000

100/ H-MOD x 3,000 H-MOD

Fixed Overheads 450,000

150/ H-MOD x 3,000 H-MOD

TOTAL COSTS 1,850,000

Should the Order be Accepted?