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Quality Products produces and sells screen-printed t-shirts to local organizations. The normal sales price per shirt is $12. Due to setup costs, they only accept
Quality Products produces and sells screen-printed t-shirts to local organizations. The normal sales price per shirt is $12. Due to setup costs, they only accept orders of at least 100 shirts. The setup cost per order is $40 and the variable costs per shirt are $3. Fixed overhead costs per month total $2,000. Quality Products has the capacity to screen-print as many as 5,000 shirts per month, but is currently producing around 3,000. On May 1, the company was approached by a local non-prof group who wishes to place a single order for 100 shirts. The non-profit group has indicated that they can only pay $5 per shirt. A. List special order. B. What are the total relevant costs of accepting the special order? C. two qualitative factors that should be considered by Quality Products before accepting the From a quantitative basis, should they accept the special order? By what amount will Quality Product's net income increase or decrease if they accept the special order
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