Roddam Company manufactures a personal computer designed for use in schools and markets it under its own label. Roddam has the capacity to produce 20,000 units a year but is currently producing and selling only 15,000 units a year. The computer’s normal selling price is $1,400 per unit with no volume discounts. The unit-level costs of the computer’s production are $550 for direct materials, $150 for direct labor, and $200 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Roddam during the year are expected to be $2,100,000 and $700,000, respectively. Assume that Roddam receives a special order to produce and sell 3,000 computers at $1,000 each.

Required

Should Roddam accept or reject the special order? Support your answer with appropriate computations.