Vernon Company manufactures a personal computer designed for use in schools and markets it under its own label. Vernon has the capacity to produce 43,000 units a year but is currently producing and selling only 17,000 units a year. The computers normal selling price is $1,620 per unit with no volume discounts. The unit-level costs of the computers production are $590 for direct materials, $290 for direct labor, and $180 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Vernon during the year are expected to be $2,240,000 and $803,000, respectively. Assume that Vernon receives a special order to produce and sell 3,150 computers at $1,240 each.

Required

Calculate the contribution to profit from the special order. Should Vernon accept or reject the special order?

contribution to profit-

should vernon accept or reject the special offer?