$77 per pair. Oakley will not incur any variable selling expenses for the order. O Data Table Direct materials Direct labor Variable manufacturing overhead Variable selling expenses Fixed manufacturing overhead Total cost * $2,400,000 Total fixed manufacturing overhead / 96,000 Pairs of sunglasses ud ese Print Done akley Sunglasses sell for about $150 per pair. Suppose that the company incurs the following average costs per pair: Click the icon to view the cost information.) Jakley has enough idle capacity to accept a one-time-only special order from Alaska Shades for 20,000 pairs of unglasses at $77 per pair. Oakley will not incur any variable selling expenses for the order. Read the requirements. Requirement 1. How would accepting the order affect Oakley's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Oakley's managers consider in deciding whether to accept the order? Prepare the analysis to determine the effect on operating income. (Enter decreases to profits with a parentheses or minus sign.) Expected increase in revenues sunglasses x Expected increase in expenses sunglasses x Expected in operating income In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Oakley's managers consider in deciding whether to accept the order? O A. Will Oakley's other customers find out about the lower sale price Oakley offered to Alaska Shades? If so, will these other customers demand lower sale prices? O B. Will lowering the sale price tarnish Oakley's image as a high-quality brand? O C. How will Oakley's competitors react? Will they retaliate by cutting their prices and starting a price war? Choose from any list or enter any number in the input fields and then continue to the next question. UE. None of the above Requirement 2. Oakley's marketing manager, Peter Cole, argues against accepting the special order because the offer price of $77 is less than Oakley's $78 cost to make the sunglasses. Cole asks you, as one of Oakley's staff accountants, to explain whether his analysis is correct. What would you say? When deciding whether to accept a special order, we should compare the Costs that we will incur whether or not we fill the order are V to our decision. This is why comparing the $77 price Alaska Shades offered us with our $78 total cost of making the sunglasses is The additional revenues and the additional costs that we will incur to fill the special order are If we accept of additional cost per pair, which the Alaska Shades special order, we will incur only $ than the $77 per pair that Alaska Shades offered. Therefore, we should the special order to the company's operating income. Choose from any list or enter any number in the input fields and then continue to the next