Eye-on-World, Inc., has a capacity of 200,000 computer monitors per year. The company is currently producing and selling 160,000 monitors per year at a selling price of $400 per monitor. The cost of producing and selling one monitor at the 160,000-unit level of activity follows:
Variable Manufacturing Costs ..................................................................... $160
Fixed Manufacturing Costs .............................................................................. 40
Variable Selling and Administrative Costs ...................................................... 80
Fixed Selling and Administrative Costs ............................................................ 20
Total Costs...................................................................................................... $300

The company has received a special order for 10,000 monitors at a price of $250 per monitor.
Because it need not pay a sales commission on the special order, the variable selling and administrative costs would be only $50 per monitor. The special order would have no effect on total fixed costs. The company has rejected the offer based on the following computations:
Selling Price per Monitor ............................................................................... $250
Variable Manufacturing Costs ......................................................................... 160
Fixed Manufacturing Costs ............................................................................... 40
Variable Selling and Administrative Costs ....................................................... 50
Fixed Selling and Administrative Costs ............................................................ 20
Net Loss per Monitor ..................................................................................... $(20)

Management is reviewing its decision and wants your advice. Should Eye-on-World have accepted the special order? Show your computations