The word "SKUNKWORKS" is easier to read in the Mikey logo. Something about the font and inverse fool the eyes a bit near the KW. Cost is key and you want an image that works in B&W. This will easily be accomplished. Is there a 2c or 4c in the plan? As for embroidery, newer machines are capable of some very high resolution (threads per inch). In screen printing, you'll be ok with the logo at it's current size.
Show us 2c! Without italics.
