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Cosco's sportsware makes jerseys for sports teams.The junior league gruop has offered to buy 80 jersey's for the teams in its leaguesfor $16 per jersey
Cosco's sportsware makes jerseys for sports teams.The junior league gruop has offered to buy 80 jersey's for the teams in its leaguesfor $16 per jersey The normal price is $20Ciscos purchases the plain jersey for $12 per jersey amd then sews a name to each jersey at a variable cost of $3 per jersey.Cisco's makes 2000 jersey's per year and has a capacity of 4000 jerseys.Fixed costs to make jerseys is $5000.Other fixed costs allocated to jerseys are 2000 per year.Should Cisco accept the offer?How much will profits be affected?
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