We have a special order that has come in for 10% of our existing production volume (this would be additional volume). We have the capacity and we have noticed that our workers have been losing efficiency due to the spare time between orders. We have some machines that could be serviced using the down time created by NOT accepting the order. The order has a profit margin 3% higher than our average profit margin on existing products. The special order is for a company that directly competes with our biggest current client. It has been reported in the financial press that within the next 2 years only one of the two companies is likely to survive. The other will likely need to be bought out.

Should we take the special order? Fully Explain!