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 Colorado Shades for 10,000 pairs of sunglasses at $87 per pair. Ashfont will not incur any variable selling expenses for the order Read the met 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? Expected increase reve 00. Al of the above OK None of t Requirement 2. Ashland's marketing manager, Peter Stenback, argues against accepting the special order because the offer price of $87 is less than Ashford's 300 cost to make the sunglasses Starback asks you, an accountants, to explain whether his analysis is conect. What would you say? When deciding whether to accept a special order, we should compare the decision. This is why comparing the 507 price Culorado Shades offered us with mur 500 total cost of making the sunglasses i The addol leves and heat we win the sp Cd Shates sped order, we wil ingi Costs that w Sack, argues against accepting the special order because the offer price of $87 is less than Ashford's $90 cost to make the sunglasse at would you say? uld compare the Costs that we will incur whether Shades offered us e will incur to fill the of Chould th revenues we will receive against the differential costs prior to filling the order. revenues we will receive against the differential costs we will incur to fill the order. revenues prior to filling the order against the extra costs we will incur to fill the order. Suppose th e-time-only Data table Direct materials Direct labor Variable manufacturing overhead Variable selling expenses 5 40 This ques 13 r any variable 10 2 $25 90 unglasses x ts, what other Fixed manufacturing overhead Total cost $2,050,000 Total fixed manufacturing overhead / 82,000 Pairs of sunglasses order? "Will they re t about the hford's imag ger, Peter Ste s is correct. W order, we sho Requirements 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? 2. Ashford's marketing manager, Peter Stenback, argues against accepting the special order because the offer price of $87 is less than Ashford's $90 cost to make the sunglasses. Stenback asks you, as one of Ashford's staff accountants, to explain whether his analysis is correct. What would you say? he su incur fice Colorado al costs that we Fill incur only moroform un nhi Print Done