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Baldwin Athletic Supply (BAS) makes game jerseys for athletic teams. The K. J. Kennedy soccer club has offered to buy 140 jerseys for the teams

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Baldwin Athletic Supply (BAS) makes game jerseys for athletic teams. The K. J. Kennedy soccer club has offered to buy 140 jerseys for the teams in its league for $13 per jersey, The team price for such jerseys normally is $18, an 80% markup over BAS's purchase price of $10 per jersey. BAS adds a name and number to each jersey at a variable cost of $i per jersey. The annual fixed cost of equipment used in the printing process is 510,400, and other fixed costs allocated to jerseys are $2.200.BAS makes about 2,100 jerseys per year, so the fixed cost is $6 per jersey. The equipment is used only for printing jerseys and stands idle 75% of the usable The manager of BAS turned down the offer, saying, "If we sell at $13 and our cost is $17, we lose money on each jersey we sell. We would like to help your league, but we can't afford to lose money on the sale." Read the requirements time Requirement 1. Compute the amount by which the operating income of BAS would change it accepted K. J. Kennedy's offer by using the contribution-margin approach. (For amounts with a 50 balance, make sure to enter "o" in the appropriate cell.) Effect of Special Order Units Sales Operating income Clear all Check

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