Company a Prints and Distributes Licensed T-Shirts, Which Wholesale at $16

Multiple Choice

Company A prints and distributes licensed T-shirts, which wholesale at $16 each. A major retail chain store has asked to be supplied with 3000 T-shirts at $14 each; these shirts would carry the store's brand name. To process the order, Company A would need to reconfigure the printing program to print the brand name. This would cost $4000 and would not be reusable. There would be no other additional costs. The current cost structure is: Should the special order be accepted, and why?

A) Yes, additional profit of $3 per shirt is made.
B) Yes, new equipment is purchased.
C) Yes, additional profit of $1.67 per shirt is made.
D) No, a loss of $4000 is incurred.