Special order. Cisco’s Sportswear makes jerseys for sports teams. The Junior League group has offered to buy 80 jerseys for the teams in its league for $16 per jersey. The normal team price for such jerseys is $20. Cisco’s purchases the plain jerseys for $12 per jersey and then sews a name and number to each jersey at a variable cost of $3 per jersey. Cisco’s makes 2,000 jerseys per year and has a capacity limit of 4,000 jerseys. The annual fixed cost of equip- ment used to make jerseys is $5,000. Other fixed costs allocated to jerseys are $2,000 per year. Compute the amount by which the operating profit of Cisco’s would change if the special order were accepted. Should Cisco’s accept the special order
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