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Rayburn's Tents makes backpacking tents. It has the capacity to produce 10000 tents per year and currently is producing and selling 7000 tents. Normal selling price for a tent is $470. Unit- level costs are $100 for direct materials, $200 for direct labor, and $25 for other manufacturing costs. Facility -level costs of $80 are allocated to each tent. Rayburn's has recieved a special order for 1,500 tents at $340 each.

Required: Should Rayburn's accept the special order? Support your answer with appropriate computation

 

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