Bradford Root Sunglasses sell for about $135 per pair. Suppose the company incurs the following average costs per pair. (Click the icon to view the cost information.) Bradford Root has enough idle capacity to accept a one-time-only special order from Rolling Glasses for 21,000 pairs of sunglasses at $74 per pair. Bradford Root will not incur any variable marketing expenses for the order. Read the requirements Requirement 1. How would accepting the order affect Bradford Root's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Bradford Root'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.) Total Order Per Unit (21,000 units) Requirements X x Data Table Incremental Analysis of Special Sales Order Decision Revenue from special order Less variable expense associated with the order: Variable manufacturing costs Direct materials $ 42 Contribution margin Direct labor 10 1. How would accepting the order affect Bradford Root's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Bradford Root's managers consider in deciding whether to accept the order? 2. Bradford Root's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $74 is less than Bradford Root's $83 cost to make the sunglasses Revo asks you, as one of Bradford Root's staff accountants, to explain whether his analysis is correct 9 Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Variable manufacturing overhead Variable marketing expenses 2 20. Fixed manufacturing overhead 83 Total cost Print Done $2,300,000 total fixed manufacturing overhead / 115,000 pairs of sunglasses Print Done