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SAVE ANSWE Question 48 1 points Cool Merch Pty Ltd is a manufacturer of clothing...

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SAVE ANSWE Question 48 1 points Cool Merch Pty Ltd is a manufacturer of clothing and has been approached to supply a special order for 20,000 designer shirts at a price of $13 per shirt. The variable costs of producing a shirt are $6 per shirt. There is sufficient spare capacity to manufacture the order, without affecting normal production. Also, the order is within the relevant range, so there will be no impact on fixed costs. Should Cool Merch Pty Ltd accept the order? There is insufficient information to tell whether Cool Merch Pty Ltd should accept the order or not. Yes, as fixed costs will not change. Yes, as profits will be increased by $140,000. No, as the price being offered of $13 per shirt is not sufficiently above the full cost of production of $6 per shirt

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