Antiquities, Inc., produces antique-looking books. Management has just received a request for a special order of 2,000 books and must decide whether to accept it. Venus Company, the purchaser, is offering to pay $22.00 per book , plus $ 3.00 for shipping costs.
The variable production costs per book include $9.20 for direct materials, $4.00 for direct labor, and $3.80 for variable overhead. The current year's production is 22,00 books, and maximum capacity is 25,000 books. Fixed costs, including overhead, advertising, and selling and administrative costs, total$80,000. The usual selling price is $25.00 per book Shipping costs, which are additional, average $3.00
Determine whether Antiquities should accept the special order.