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Ashley Speer Sunglasses sell for about $155 per pair. Suppose that the company incurs the following average costs per pair: E(Click the icon to view

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Ashley Speer Sunglasses sell for about $155 per pair. Suppose that the company incurs the following average costs per pair: E(Click the icon to view the cost information.) Ashley Speer has enough idle capacity to accept a one-time-only special order from Rolling Shades for 23,000 pairs of sunglasses at $75 per pair. Ashley Speer will not incur any variable selling expenses for the order. Read the requirements. Requirement 1. How would accepting the order affect Ashley Speer's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Ashley Speer'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 x | sunglasses x Expected increase in expenses Expected in operating income 5 of 5 (2 complete) core: 0 of 5 pts HW Score: 33.88%, 12.2 of 36 pts 25-11 (similar to) Question Help Ashley Speer Sunglasses coll for about $155 pArnair Supnoce that tho company incure the follouing avora00 cocts por pair E (Click the icon to vie Ashley Speer has enough Read the requirements Data Table t Requirements Requirement 1. How wo order? Direct materials 38 Ito accept the In p 1. How would accepting the order affect Ashley Speer's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Ashley Speer's managers consider in deciding whether to accept the order? 2. Ashley Speer's marketing manager, Peter Smith, argues against accepting the special order because the offer price of $75 is less than Ashley Speer's $85 cost to make the sunglasses. Smith asks you, as one of Ashley Speer's staff accountants, to explain whether his analysis is correct. What would you say? Direct labor 12 Prepare the analysis to d Variable manufacturing overhead Variable selling expenses Expected increase in re 25 Fixed manufacturing overhead Expected increase in e 85 Total cost Expected * $2.300.000 Total fixed manufacturing overhead / 92.000 Pairs of sunalasses Print Done Print Done thoose from any list or enter any number in the innut fields and then click Check

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