Damon, Inc. currently produces 30,000 sweatshirts each year for its regular customers and charges $30 per sweatshirt. Damon has capacity to produce an additional 5,000 sweatshirts if sales grow in the future. Variable costs total $16 per sweatshirt and annual fixed costs total $60,000. The city of Loveland recently approached the company and proposed a one-time purchase of 1,000 sweatshirts for $24 each. Should Damon accept the special order proposal?

Group of answer choices

No, because total fixed costs will increase by $2,000 and total sales will decline by $6,000 from this special order.

Yes, because they will make $6 per shirt from this special order.

Yes, because they will make $8 per shirt from this special order.

No, because they will lose $6 per shirt from this special order.

None of the answer choices is correct.