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Naui Industries produces flowered shirts which normally sell for $24 each. The total cost to manufacture each shirt is $17, which consists of $11 of variable costs and $6 of fixed costs. A hotel chain has approached Naui with a special order for 2,000 shirts at $15 each.
-Assuming Naui has sufficient excess capacity to fill this special order without affecting sales to current customers,it should:
A)reject the offer since income will decrease by $8,000
B)accept the offer since income will increase by $8,000
C)reject the offer since income will decrease by $4,000
D)accept the offer since income will increase by $4,000

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Naui Industries produces flowered shirts which normally sell for $24 each. The total cost to manufacture each shirt is $17, which consists of $11 of variable costs and $6 of fixed costs. A hotel chain has approached Naui with a special order for 2,000 shirts at $15 each.
-Assuming Naui has sufficient excess capacity to fill this special order without affecting sales to current customers,it should:
A)reject the offer since income will decrease by $8,000
B)accept the offer since income will increase by $8,000
C)reject the offer since income will decrease by $4,000
D)accept the offer since income will increase by $4,000

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The Answer of Use the following to answer questions 
Naui Industries produces flowered shirts which normally sell for $24 each. The total cost to manufacture each shirt is $17, which consists of $11 of variable costs and $6 of fixed costs. A hotel chain has approached Naui with a special order for 2,000 shirts at $15 each.
-Assuming Naui has sufficient excess capacity to fill this special order without affecting sales to current customers,it should:
A)reject the offer since income will decrease by $8,000
B)accept the offer since income will increase by $8,000
C)reject the offer since income will decrease by $4,000
D)accept the offer since income will increase by $4,000

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