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Bradford Cole Sunglasses sell for about $145 per pair. Suppose the company incurs the following average costs per pair (Click the icon to view the
Bradford Cole Sunglasses sell for about $145 per pair. Suppose the company incurs the following average costs per pair (Click the icon to view the cost information.) Bradford Cole has enough idle capacity to accept a one-time-only special order from Water Glasses for 22,000 pairs of sunglasses at $73 per pair. Bradford Cole will not incur any variable marketing expenses for the order Read the requirements. Requirement 1. How would accepting the order affect Bradford Cole's operating income? In addition to the special order's effect on profits, what other (longer-term quialtative) factors should Bradford Cole's managers consider in deciding whether to accept the order? Prepare an incremental analysis to determine the special order's effect on operating income. (Enter a "0" for any zero balances. Use parentheses or a minus sign to indicate a decrease in operating income from the special order.) Get more help a Data table Requirements 1. How would accepting the order affect Bradford Cole's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Bradford Cole's managers consider in deciding whether to accept the order? 2. Bradford Cole's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $73 is less than Bradford Cole's $82 cost to make the sunglasses Revo asks you, as one of Bradford Cole's staff accountants, to explain whether his analysis is correct
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