1. The Lounge Company manufactures slippers and sells them at $13 a pair. Variable manufacturing cost is $4.25 a pair, and allocated fixed manufacturing cost is $2.75 a pair. It has enough idle capacity available to accept a one-time-only special order of 40,000 pairs of slippers at $7.00 a pair. Lounge will not incur any marketing costs as a result of the special order. What would the effect on operating income be if the special order could be accepted without affecting normal sales: (a) $0, (b) $110,000 increase, (c) $170,000 increase, or (d) $280,000 increase? Show your calculations. 2. The Savannah Company manufactures Part No. 498 for use in its production line. The manufacturing cost per unit for 10,000 units of Part No. 498 is as follows: (Click to see the manufacturing cost per unit.) Read part 2's (equiremen 1. The Lounge Company manufactures slippers and sells them at $13 a pair. Variable manufacturing cost is $4.25 a pair, and allocated fixed manufacturing cost is $2.75 a pair. It has enough idle capacity available to accept a one-time-only special order of 40,000 pairs of slippers at $7.00 a pair. Lounge will not incur any marketing costs as a result of the special order. What would the effect on operating income be if the special order could be accepted without affecting normal sales: (a) $0, (b) $110,000 increase, (c) $170,000 increase, or (d) $280,000 increase? Show your calculations. Begin by selecting the labels to calculate the effect on operating income and then enter in the supporting calculations. * units in special order Effect on operating income