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Fanning Company manufactures a personal computer designed for use in schools and markets it under its own label. Fanning has the capacity to produce $27,000$ units a year but is currently producing and selling only $12,000$ 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$$s production are $$560$ for direct materials, $$240$ for direct labor, and $$120$ for indirect unit$-$level manufacturing costs. The total product$-$ and facility$-$level costs incurred by Fanning during the year are expected to be $$2,150,000$ and $$807,000,$ respectively. Assume that Fanning receives a special order to produce and sell $3,080$ computers at $$1,260$ each.

Required

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

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