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Arthur Smith Sunglasses sell for about $150 per pair Suppose the company incurs the following average costs per pair (Click the icon to view the
Arthur Smith Sunglasses sell for about $150 per pair Suppose the company incurs the following average costs per pair (Click the icon to view the cost information) Arthur Smith has enough idle capacity to accept a one-time-only special order from Colorado Glasses for 17.000 pairs of sunglasses at 580 por pair Arthur Smith will not incur any variable marketing expenses for the order Read the requirements Per Unit (17,000 units) 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 Increase (decrease) in operating income from the special order Enter any number in the edit fields and then click Check Answer Direct materials ...... Direct labor. ......... Variable manufacturing overhead ..... Variable marketing.expenses. Fixed manufacturing overhead .. 25 106 Total.cost....... * $2,100,000 total fixed manufacturing overhead / 84,000 pairs of sunglasses
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