Belltown Athletic Supply (BAS) makes game jerseys for athletic teams. The L. L. Kelly soccer club has offered to buy 120 jerseys for the teams in its league for $16 per jersey. The team price for such jerseys normally is $21, a 75% markup over BAS's purchase price of $12 perjersey. BAS adds a name and number to each jersey at a variable cost of $1 perjersey. The annual fixed cost of equipment used in the printing process is $8,600, and other xed costs allocated to jerseys are $2,400. BAS makes about 2,200 jerseys per year, so the fixed cost is $5 per jersey. The equipment is used only for printing jerseys and stands idle 75% of the usable time. The manager of BAS turned down the offer, saying, "If we sell at $16 and our cost is $18, 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."