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Question 7 (4 points) Spartan Tees manufactures MSU Wt-shirts for athletic events. Its manufacturing M has the capacity to produce 6,000 t-shirts per month. Current
Question 7 (4 points) Spartan Tees manufactures MSU Wt-shirts for athletic events. Its manufacturing M has the capacity to produce 6,000 t-shirts per month. Current production and sales are 5,000 t-shirts per month. Spartan Tees normally charges $25 per t-shirt. Cost information for the current activity level is as follows: Direct materials $50,000 Direct labor 10,000 Batch overhead costs =12 (50 batches x $250 per batch) Fixed overhead 4% Fixed marketing costs 7,500 Total costs $105,000 Spartan Tees has just received a special on-time-only order for 1,000 t-shirts at $16 per t-shirt. The batch sizes for this order will not change. What will be the dollar amount of the prot g loss of accepting this special order? (Identify whether it will be prot or loss)
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