Piper Rose Boutique has been approached by the community college to make special polo shirts for the faculty and staff. The college is willing to buy 4,000 own design for $6.00 each. The company normally sells its shirts for $12.00 each. The company has enough excess capacity to make this order. A breakdo is as follows: Direct materials Direct labor Variable factory overhead Fixed factory overhead Total cost per unit $2.00 0.50 1.50 2.50 $6.50 Should Piper Rose Boutique accept the special order made by the college? Proposal to Sell Polo Shirts to College Differential revenue from accepting offer Differential variable costs of additional units The order should be Differential income (loss) from accepting the offer

Piper Rose Boutique has been approached by the communiky college to make special polo shirts for the faculty and staff, The college is wiling to bity 4,00 own design for $6.00 each. The company normally sells its shirts for $12.00 each. The company has enough excess capacity to make this order. A breake is as foliows: Should Piper Rose Boutique accept the special order made by the college? Proposal to Sell Polo Shirts to College