Arthur Juda Sunglasses sell for about $135 per pair. Suppose the company incurs the following average costs per pair: EF! (Click the icon to view the cost information) Arthur Juda has enough idle capacity to accept a one-time-only special order from Nevada Glasses for 20,000 pairs of sunglasses at 574 per pair Arthur Juda will not incur any variable marketing expenses for the order. Read the requirements Requirement 1. How would accepting the order affect Arthur Juda's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Arthur Juda's managers consider in deciding wheth accept the order? Prepare an incremental analysis to determine the special order's effect on operating income. (Enter a "O" for any zero balances. Use parentheses or a minus sign to indicate a decrease in operating income from the special order.) Total Order Per Unit (20,000 units) Data Table Incremental Analysis of Special Sales Order Decision Revenue from special order Less variable expense associated with the order: Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the order Direct materials. $ 38 Direct labor. 14 Variable manufacturing overhead. 12 Variable marketing expenses 3 16 Fixed manufacturing overhead S 83 Total cost * $2,100,000 total fixed manufacturing overhead 131,250 pairs of sunglasses Increase (decrease) in operating income from the special order - X Requirements Enter any number in the 1. How would accepting the order affect Arthur Juda's operating incomo? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Arthur Juda's managers consider in deciding whether to accept the order? 2. Arthur Juda's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $74 is less than Arthur Juda's $83 cost to make the sunglasses. Revo asks you, as one of Arthur Juda's staff accountants, to explain whether his analysis is correct Print Done ock Ans Help Me Solve TH