• The company produces and sells athletic shoes for children.
• The costs associated with each pair of shoes are estimated to be $14 of variable costs and $5 of fixed costs.
• The shoes normally sell for $35 per pair.
• A local childrens athletic league has offered to buy 100 pairs of shoes for $19 each.
• The company has excess capacity.

1. Which costs are irrelevant?
2. Which costs are relevant?
3. How much additional revenue would be earned if they accept the offer?
4. How much additional cost would be incurred if they accept the offer?
5. How much additional profit would be incurred if they accept the offer?
6. Should the company accept the offer?
7. What other factors should the company consider before accepting the offer?