Jordan Company manufactures a personal computer designed for use in schools and markets it under...

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Accounting

Jordan Company manufactures a personal computer designed for use in schools and markets it under its own label. Jordan has the capacity to produce 34,000 units a year but is currently producing and selling only 12,000 units a year. The computers normal selling price is $1,740 per unit with no volume discounts. The unit-level costs of the computers production are $430 for direct materials, $120 for direct labor, and $140 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Jordan during the year are expected to be $2,290,000 and $816,000, respectively. Assume that Jordan receives a special order to produce and sell 3,120 computers at $1,240 each.
Required
Calculate the contribution to profit from the special order. Should Jordan accept or reject the special order?

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