Boston Athletic Supply (BAS) makes game jerseys for athletic teams. The S. H. Kaiser sooter club has offered to buy 140 jerseys for the teams in its league for $12 per jersey. The team price for such jerseys normally is $14, a 75% markup over BAS's purchase price of 58 per jersey. BAS adds a name and number to each jersey at a variable cost of $1 per jersey. The annual fixed cost of equipment used in the printing process is $7,000, and other fixed costs allocated to jerseys are $2,100 BAS maks about 2.500 jerseys per year, so the fixed cost is $4 per jersey. The equipment is used only for printing jerseys and stands idle 75% of the usable time. The manager of BAS turned down the offer, saying, we sell at $12 and our cost is $13, we lose money on each jersey we sell. We would like to help your league, but we can't afford to lose money on the sale." Read the requirements Purchase coul 1.120 140 Variable printing cout Total variable co 1.250 420 Contribution margin Toll feed costs 0 420 Operating income Requirement 2. Suppose you were the manager of BASS Would you accept the offer? in addition to considering the quantitative impact computed in requirement 1, let heo qualitative considerations that would influence your decision-one supporting acceptance of the offer and one rejection If aming operating income in the short run were the only goal, the order should be accepted One reason to reject the offers that accepting 5. H. Kaiser's offer may generate similar (ow) offers from other clubs who now willingly pay the $14 normal price increased profits on suth business might more than offset the pan on sale from 8. H. Kar On the other hand, a reason to accept the offer is that this might be a way of gaining . H. Kaiser as regular customer who wilt then buy other tems that generate an even greater prot