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Foot apparel manufactures socks. the athletic division sells its socks for $6 a pair to external customers. socks have variable manufacturing costs of $2.50 per pair and fixed manufacturing costs of $1.50 per pair. the division’s total fixed manufacturing costs are $105,000 at the normal volume of 70,000 pairs. the operating range is 50,000 pairs to 100,000 pairs. the european division has offered to buy 15,000 pairs at the full cost of $4. the athletic division has excess capacity and the 15,000 pairs can be produced without interfering with the current outside sales of 70,000 pairs. should the athletic division accept the offer
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