Piper Rose Boutique has been approached by the community college to make special polo shirts for the faculty and staff. The college is willing to buy 4,000 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 the costs is as follows: Should Piper Rose Boutique accept the special order made by the college? Show computations, but a formal differential analysis report is not required.

Question

Piper Rose Boutique has been approached by the community college to make special polo shirts for the faculty and staff. The college is willing to buy 4,000 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 the costs is as follows:  Should Piper Rose Boutique accept the special order made by the college? Show computations, but a formal differential analysis report is not required.

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The Answer of Piper Rose Boutique has been approached by the community college to make special polo shirts for the faculty and staff. The college is willing to buy 4,000 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 the costs is as follows:  Should Piper Rose Boutique accept the special order made by the college? Show computations, but a formal differential analysis report is not required.

Piper Rose Boutique Has Been Approached by the Community College