Exercise $13-7$A $($Algo$)$ Special order decision LO $13-2$

Vernon Company manufactures a personal computer designed for use in schools and markets it under its own label. Vernon has the capacity to produce $36,000$ units a year but is currently producing and selling only $19,000$ units a year. The computer$$s normal selling price is $$1,610$ per unit with no volume discounts. The unit$-$level costs of the computer$$s production are $$570$ for direct materials, $$100$ for direct labor, and $$170$ for indirect unit$-$level manufacturing costs. The total product$-$ and facility$-$level costs incurred by Vernon during the year are expected to be $$2,200,000$ and $$810,000,$ respectively. Assume that Vernon receives a special order to produce and sell $3,170$ computers at $$1,270$ each.

Required

Calculate the contribution to profit from the special order. Should Vernon accept or reject the special order?