accounting help

Ashford 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.) Ashford has enough idle capacity to accept a one-time-only special order from Montana Shades for 21,000 pairs of sunglasses at $81 per pair. Ashford will not incur any variable selling expenses for the order. Read the requirements. Requirement 1. How would accepting the order affect Ashford's operating income? In addition to the special order's effect on profits, what oth the order? Data Table Prepare the analysis determine the effect on operating income. (Enter decreases to profits with a parentheses or minus sign.) Expected increase in revenues sunglasses Direct materials $ 40 Expected increase expenses sunglasses 8 Expected in operating income Direct labor Variable manufacturing overhead Variable selling expenses 7 In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Ashford's managers consider in deciding 3 $25* Fixed manufacturing overhead $ $ 83 O A. How will Ashford's competitors react? Will they retaliate by cutting their prices and starting a price war? OB. Will lowering the sale price tarnish Ashford's image as a high-quality brand? O C. Will Ashford's other customers find out about the lower sale price Ashford offered to Montana Shades? If so, will these other customer 83 Total cost O D. All of the above Print Done O E. None of the above Requirement 2. Ashford's marketing manager, Peter Smith, argues against accepting the special order because the offer price of $81 is less than Ashford's $83 cost to make the sunglasses. Smith asks you, as one of Ashford's staff accountants, to explain whether his analysis is correct. What would you say? Costs that we will incur whether or not we fill the order are V to our When deciding whether to accept a special order, we should compare the decision. This is why comparing the $81 price Montana Shades offered us with our $83 total cost of making the sunglasses is The additional revenues and the additional costs that we will incur to fill the special order are the Montana Shades special order, we will incur only of additional cost per pair, which is per pair that Montana Shades offered. Therefore, we should the special order to If we accept than the $81 the company's Choose from any list or enter any number in the input fields and then continue to the next question. Ashford 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.) Ashford has enough idle capacity to accept a one-time-only special order from Montana Shades for 21,000 pairs of sunglasses at $81 per pair. Ashford will not incur any variable selling expenses for the order. Read the requirements. Requirement 1. How would accepting the order affect Ashford's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Ashford'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 sunglasses x Expected increase in expenses Expected in operating income In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Ashford's managers consider in deciding whether to accept the order? O A. How will Ashford's competitors react? Will they retaliate by cutting their prices and starting a price war? OB. Will lowering the sale price tarnish Ashford's image as a high-quality brand? OC. Will Ashford's other customers find out about the lower sale price Ashford offered to Montana Shades? If so, will these other customers demand lower sale prices? OD. All of the above O E. None of the above Requirement 2. Ashford's marketing manager, Peter Smith, argues against to explain whether his analysis is correct. What would you say? cepting the special order because the offer price of $81 is less than Ashford's $83 cost to make the sunglasses. Smith asks you, as one of Ashford's staff accountants, Costs that we will incur whether or not we fill the order are to our When deciding whether to accept a special order, we should compare the decision. This is why comparing the $81 price Montana Shades offered us with our $83 total cost of making the sunglasses is If we accept The additional revenues and the additional costs that we will incur to fill the special order are the Montana Shades special order, we will incur only of additional cost per pair, which is per pair that Montana Shades offered. Therefore, we should the special order to than the $81 the company's Choose from any list or enter any number in the input fields and then continue to the next