I have received an order for 125,000 units of product A for a reduced price of $1.25. I have capacity to fill the order and this is a one-time only customer. My normal price is $2.00 and my product cost is $1.40 per unit. My per unit product costs are: direct materials $.60, direct labor $.40, fixed manufacturing overhead $.25, and variable manufacturing overhead $.15. Should I accept the special order?
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