Question: Bedford Athletic Supply (BAS) makes game jerseys for athletic teams. The S. H. Kaiser soccer club has offered to buy 110 jerseys for the teams

Bedford Athletic Supply (BAS) makes game jerseys for athletic teams. The S. H. Kaiser soccer club has offered to buy 110 jerseys for the teams in its league for $14 per jersey. The team price for such jerseys normally is $21, a 75% markup over BAS's purchase price of $12 per jersey. BAS adds a name and number to each jersey at a variable cost of $1 per jersey. The annual fixed cost of equipment used in the printing process is $5,300, and other fixed costs allocated to jerseys are $1,900. BAS makes about 2,400 jerseys per year, so the fixed cost is $3 per jersey. The equipment is used only for printing jerseys and stands idle 75% of the usable time. The manager of BAS turned down the offer, saying, "If we sell at $14 and our cost is $16, we lose money on each jersey we sell. We would like to help your league, but we can't afford to lose money on the sale." Read the requirements. approach. (For amounts with a $0 palance, make sure to enter "U" in the appropriate cell.) Effect of Special Order 110 Units Sales 1540 Less variable costs: Purchase cost Less variable costs: Total variable costs Contribution margin Total fixed costs Operating income Choose from any list or enter any number in the input fields and then click Check
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