6. Taipei Company produces basketballs that it sells for $40 each. At capacity, Taipei can produce 60,000 units a year. The costs of producing and selling 60,000 units are as follows:

| | Unit cost | Total costs |
| --- | --- | --- |
| Direct materials | $15 | $900,000 |
| Direct labor | $4 | $240,000 |
| Variable manufacturing overhead | $3 | $180,000 |
| Fixed manufacturing overhead | $6 | $360,000 |
| Variable marketing costs | $4 | $240,000 |
| Fixed marketing costs | $3 | $180,000 |

Required:

Suppose Taipei Company is currently producing and selling 50,000 basketballs. Tainan Company wants to place a one-time only special order for 8,000 basketballs at $25 each. Taipei Company will not incur variable marketing costs for this special order. Should Taipei Company accept this order? Please show your calculations. (15%)