Mason textile company manufactures high quality bed sheets and sells them in sets to a well known retail company for 64$ a set. Mason has sufficient capacity to produce 150000 sets of sheets anually. the retail company currently purchases 100000 sets each year.
Mason unit level cost is 36$ per set and its fixed cost is 840000 per year. a motel chain has offered to purchase 15000 sheet sets from mason for 45$ per set.
If mason accepts the order the contract will prohibit the motel chain from reselling the bed sheets. required: should mason accept or reject the special order? support your answer with appropriate computation.