Stretch Yoga pants sell for $92 a pair.Stretch Inc.'s costs for manufacturing a pair of yoga pants are presented below. Stretch Inc. receives an offer from Yoga-Iz-Us for a one-time order of 15,000 pair of yoga pants at $65 a pair. Stretch Inc. has enough normal capacity to accommodate the order. Yoga-Iz-Us is outside Stretch's normal market. No additional variable selling expense is expected.

Direct Materials:$28

Direct Labor:10

Variable Manufacturing Overhead: 9

Variable Selling Expense:1

Fixed Manufacturing Overhead: 22

Total Cost per pair:$70

(a) Based on financial information only, would you accept this offer? Yes or No answer only.

(b)brief financial analysis to support your answer to question (a).

(c) Stretch's marketing manager argues that accepting this special offer would be a bad decision because the offer price of $65 is less than the cost to make a pair ($70). How would you respond to the marketing manager?