Benson Company manufactures a personal computer designed for use in schools and markets it under its own label. Benson has the capacity to produce 41,000 units a year but is currently producing and selling only 12,000 units a year. The computer's normal selling price is $1,740 per unit with no volume discounts. The unit-level costs of the computer's production are $590 for direct materials, $220 for direct labor, and $160 for indirect unit-level manufacturing costs. The total product - and facility-level costs incurred by Benson during the year are expected to be $2,160,000 and $801,000, respectively. Assume that Benson receives a special order to produce and sell 3,130 computers at $1,260 each.
Should Benson accept or reject the special order?
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