Rowe Tool and Die $($RTD$)$ produces metal fittings as a supplier to various manufacturing firms in the area. The following is the forecasted income statement for the next quarter, which is the typical planning horizon used at RTD$.$ RTD expects to sell $63,000$ units during the quarter. RTD carries no inventories.

Amount Per Unit

Sales revenue $ $1,978,200$ $ $31\mathrm{.}40$

Costs of fitting produced $1,486,80023\mathrm{.}60$

Gross profit $ $491,400$ $ $7\mathrm{.}80$

Administrative costs $346,5005\mathrm{.}50$

Operating profit $ $144,900$ $ $2\mathrm{.}30$

Fixed costs included in this income statement are $$409,500$ for depreciation on plant and machinery and miscellaneous factory operations and $$103,500$ for administrative costs. RTD has received a request for $10,000$ fittings to be produced in the next quarter from Endicott Manufacturing. Endicott has never purchased from RTD$,$ although they have been a local company for many years. Endicott has offered to pay $$21\mathrm{.}80$ per unit. RTD can easily produce the $10,000$ units with its existing capacity. Production of the $10,000$ units will incur all variable manufacturing costs but no fixed manufacturing costs. No administrative costs will be incurred because of the order.