A company that specializes in tours in England has offered to purchase 5,000 umbrellas at $ 11 each from Hampshire . The variable selling costs of these additional units will be $ 1.30 as opposed to $ 1.10 per unit . Also , this production activity will incur another $ 15,000 of fixed administrative costs . Should Hampshire agree to sell these additional 5,000 umbrellas to the touring business ? Provide calculations to support your decision .
Additionally , complete Parts B and D of Section I as outlined in the Final Project Guidelines and Rubric document .
Section II : Inventory Management
The information below represents the beginning and ending inventory amounts along with the production and sales for the month in umbrella units .
Beginning Inventory : 0 Umbrellas
Production : 80,000 Umbrellas