ACCT 202

mpire Bungil for about 15 per pair Supoco at the company Incurs the following avere costs per Il the lost the cost formation Hampshire has enough ide concity to contine only special order from West 25.000 persones per part with my being for Head the went Requirement 1. How would conting the one act Himaw's cerating income? in content to the calcrcera eftact on profits, what other longer tomto tectos chout Hampthis managers come in feciting whether to accept the older? Prepare the analysis to determine the effect on erating income Entertains to profit with a parentes mo Expected incassins 25000 Expected increase in senses 25000 unge Expected in operating income In addition to the special order's effect on profits, what other long-term qualse factors should Hamoirs managers consider deciding whether to accept the order OA W Hampshire other customers find out about the lower sale price Hampshire offered to Water Shades?ts will these cher customers and lower rices? OB. Wil lowering the sale price tanish Hampshire's image as a high-quality and OC How will Hampshe's so petitors react? Will they relats by cuting the prices and starting a price war? OD. All of the above OE None of the above Requirement 2. Huncut's marketing neger. Peter White, arguits against op te special order because the other price of 532 Hampshire's $88 cost to make the studieses White anks you crno Hampshe's stall accountants, to explain with his analysis is correct. What would you say? When deciding whether to accept a special order, we should compare the Cose we will her or not well the ordetare to our decision. This is why comparing the $82 peice Water Shades offered us with our $88 tot cost of making the songs The additional rous and the deitional costs that we will incur of the specat order we the Water Shades social order wo will incur only of additional cost pero which is per partiet Water Shades offered. Therefore, we should the special trder to opowing income than the 582 The company's coroct CONTACT Data table Direct materials $ 44 Direct labor 16 6 Variable manufacturing overhead Variable selling expenses 2. $20* 88 Fixed manufacturing overhead $ Total cost $2,050,000 Total fixed manufacturing overhead / 102,500 Pairs of sunglasses Print Done