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Timesup Inc. has been approached by a college to make special polo shirts for the faculty and staff. The college is willing to buy 5,000
Timesup Inc. has been approached by a college to make special polo shirts for the faculty and staff. The college is willing to buy 5,000 polos with its own design for $6.00 each. The company normally sells its shirts for $12.00 each. The company has enough excess capacity to make this order. A breakdown of costs is as follows: Direct materials $2.00 Direct labor 1.00 Variable costs 1.50 Fixed costs 2.50 Total cost per unit $7.00 Should Timesup Inc. accept the special order made by the college? Make sure you state clearly whether it should be accept the special order or not and why. 7 A- jii Til - I U X2 x2 &
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