A Local Clothing Manufacturer,Polo Pty Ltd,has Been Approached to Supply

A local clothing manufacturer,Polo Pty Ltd,has been approached to supply a special order for 20 000 polo shirts at a price of $6 per polo shirt.The current cost of producing a shirt is made up of direct costs of $4 per shirt plus an allocation of fixed costs of $7.00 per shirt.Polo Pty Ltd has sufficient spare capacity to manufacture the order without affecting its normal production.Should Polo Pty Ltd accept the order?

A) no,as the price being offered of $6 per shirt not sufficiently above the full cost of production of $5.50 per shirt
B) yes,as long as there are no adverse long-term effects of accepting the order that outweigh the short-term benefit of a contribution of $40 000 towards overhead costs
C) there is insufficient information to tell whether Polo Pty Ltd should accept the order or not
D) yes,as profits will be increased by the excess of the order price above the variable costs of production ($6 - $4 = $2 x 20 000 shirts = $40 000)