Piper Rose Boutique Has Been Approached by the Community College

question 153

Essay

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 their costs is as follows: $$\begin{array} { l r } \text { Direct materials } & \$ 2.00 \\\text { Direct labor } & 0.50 \\\text { Variable costs } & 1.50 \\\text { Fixed costs } & 2.50 \\\text { Total cost per unit } & \$ 6.50\end{array}$$ Should Piper Rose Boutique accept the special order made by the college?

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Definitions:

Scarring

The process of fibrous tissue forming over a wound or injury during the healing phase, which can alter the appearance and function of the affected area.

Stiff

Lacking in ease of movement or flexibility, often referring to muscles or joints.

Conchae

Curved bony structures in the nasal cavity that help to filter, humidify, and warm inhaled air.

Nasal Cavity

A large air-filled space above and behind the nose in the middle of the face, involved in breathing and smelling.