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Quincy Quilt Company s normal price per quilt is $ 6 5 . 0 0 . They received a special request from Quaint Home Inc.

Quincy Quilt Companys normal price per quilt is $65.00. They received a special request from Quaint Home Inc. requesting 1,200 quilts at a price of $45.00 per quilt. Quincys factory capacity can accommodate the manufacturing of 7,000 quilts per month, and their current monthly sales are 4,000 quilts. Quincy also obtained the following information: Fixed Manufacturing Costs at capacity are $52,000, additional Selling and Administrative Costs for the special order are $2,800 and Total Variable Costs per quilt are $42.00.
Should Quincy accept or reject the special order, and why should they either accept or reject it?
Quincy should reject the special order. The special order will lose them $800.
Quincy should accept the special order. The special order will earn them $800 in profit.
Quincy should accept the special order. The special order will gain them $24,000 in profit.
Quincy should reject the special order. The special order will lose them $24,000.

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