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 polos with its 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 breakdown of the costs is as follows:

Line Item Description	Costs
Direct materials	$2.00
Direct labor	0.50
Variable factory overhead	1.50
Fixed factory overhead	2.50
Total cost per unit	$6.50

Should Piper Rose Boutique accept the special order made by the college?

Question Content Area

blank Proposal to Sell Polo Shirts to College blank

Line Item Description	Amount
Differential revenue from accepting offer
Differential variable costs of additional units
Differential income (loss) from accepting the offer

Question Content Area

The order should be:

acceptedrejected

.