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Wang Company manufactures circuit boards. The company has a manufacturing capacity of 40,000 circuit boards per month with total fixed manufacturing costs of $180,000. At

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Wang Company manufactures circuit boards. The company has a manufacturing capacity of 40,000 circuit boards per month with total fixed manufacturing costs of $180,000. At present, the company is selling 32,000 circuit boards per month through regular channels at a selling price of $12.00 each. The following cost information per unit is available: Variable manufacturing cost Variable selling expense Fixed manufacturing cost Total Cost $6.10 1.20 2.50 $9.80 The company has just obtained a request for a one-time special order of 7,000 circuit boards at a price of $8.75 per Board. If the special order is accepted, Wang must add a specialized component to the circuit board which will increase the direct material cost by $1.25. Wang will not incur any selling expense on the special order but the boards must be shipped to Vietnam at a cost to Wang of $3,500. In addition, the special order requires a one-time set-up of the manufacturing facility. The set-up would cost Wang $4,500. Required: Should Wang accept the special order

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