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Ashley Speer Sunglasses sell for about S155 per pair. Suppose that the company incurs the following average costs per pair E (Click the icon to
Ashley Speer Sunglasses sell for about S155 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 Expected increase in expenses Expected in operating income sunglasses x sunglasses x 5 of 5 (2 complete) HW Score: 33.88%, 12.2 of 36 pts core: 0 of 5 pts E25-11 (similar to) Question Help ic Cunce that the com i cure the follow OMOLOGA cocte Darnir Ashley Speer Sunglasses call for about $466. D E (Click the icon to vie A Data Table Ashley Speer has enoug Read the requirements. Requirements to accept the Requirement 1. How wo order? Prepare the analysis to d Expected increase in re Expected increase in e Expected Direct materials Direct labor Variable manufacturing overhead Variable selling expenses Fixed manufacturing overhead Total cost * $2.300.000 Total fixed manufacturing overhead/92.000 Pairs of sunglasses 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? Print Done Print Done Choose from any list or enter any number in the innut fields and then click Check Answer ntain All produces plastic storage bins for household rage needs. (Click the icon to view additional information.) Sales prices and variable costs are as follows: 2 (Click the icon to view the costs.) Read the requirements. quirement 1.1 JA.. . AWA mplete the pro * More Info - X les price per riable cost per entribution mar its per machir The company makes two sizes of bins: large (50 gallon) and regular (35 gallon). Demand for the products is so high that containAll can sell as many of each size as it can produce. The company uses the same machinery to produce both sizes. The machinery can only be run for 2,700 hours per period. ContainAll can produce 12 large bins every hour, whereas it can produce 17 regular bins in the same amount of time. Fixed costs amount to $85,000 per period. Print Done entribution mar
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