Exercise $6-7$A $($Algo$)$ Special order decision LO $6-2$

Gibson Company manufactures a personal computer designed for use in schools and markets it under its own label. Gibson has the capacity to produce $35,000$ units a year but is currently producing and selling only $14,000$ units a year. The computer$$s normal selling price is $$1,790$ per unit with no volume discounts. The unit$-$level costs of the computer$$s production are $$540$ for direct materials, $$150$ for direct labor, and $$130$ for indirect unit$-$level manufacturing costs. The total product$-$ and facility$-$level costs incurred by Gibson during the year are expected to be $$2,140,000$ and $$810,000,$ respectively. Assume that Gibson receives a special order to produce and sell $3,000$ computers at $$1,210$ each.

Required

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