Tyler Co$.$ makes a single product which it sells for $$50$ per unit. The company$$s operating capacity is $30,000$ units per year. Costs associated with the product are as follows:

Per Unit Total for $30,000$ units

Direct Material $$15$ $ $450,000$

Direct Labor $8240,000$

Variable Overhead $390,000$

Fixed Overhead $9270,000$

Variable Selling $4120,000$

Fixed Selling $6180,000$

$$45$ $ $1,350,000$

The Army would like to make a one$-$time purchase of $5,000$ units for a fixed fee of $$1\mathrm{.}80$ plus production costs $($both fixed and variable$).$ Because they would pick up the order there would be no variable selling expense associated with the order. $1.$ Assume we expect to sell $25,000$ units next year. Should the offer be accepted?

$2.$ Assume we expect to sell $30,000$ units next year. Should the offer to accepted?order there would be no variable selling expense associated with the order.