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…

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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