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Men nme TW Stella Cole Sunglasses sell for about S152 per pair, Suppose the company incurs the following average costs per pair Click the icon to view the cost information Stella Cole has enough idle capacity to accept a one-time-only special order from Montana Glasses for 20.000 pair of sunglasses at $75 per pair Stela Cole will not incur any variable marketing expenses for the order Read the requirements Requirement 1. How would accepting the order affect Stella Cole's operating incomo? In addition to the special orders affect on profits, what other (longor-form ales qualitative) factors should Stella 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 "o for any zero balances. Use parentheses or a minus sign to omes indicate a decrease in operating income from the special order) mic: a Qu Total Order Per Unit (20,000 units) Incremental Analysis of Special Sales Order Decision Revenue from special order Loss variable expense associated with the order Variable manufacturing costs Enter any number in the edit fields and then continue to the next question, Dee Stella Cole Sunglasses sell for about $152 per pair Suppose the company incurs the following average costs per pair Click the icon to view the cost information) Steta Cole has enough ide capacity to accept a one-time only special order from Montana Glasses for 20,000 pairs of sunglasses at 875 per poit. Stella Cole will not incur any variable marketing expenses for the order. Read the requirements Lese: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order In addition to determining the special order's effect on operating profits. Cole's managers also should consider the following: O A Will lowering the sale price tarnish Stelle Cole's image as a high-qually brand? O B. How will Stella Cole's competitors react? Will they retaliate by cutting their prices and starting a prion war? OC. Will Stella Cole's other customers find out about the lower sale price Stella Cole offered to Montana Glasses? If so, will these other customers demand lower sale prices? OD. All of the above OE. None of the above 50 inti Lab A This Question: 4 pts 25 of 40 (21 complete) This Test: 100 pts possible STAN ain Men . mnamic BUTH Stelia Cole Sunglasses sail for about $162 per pair. Suppose the company incurs the following average costs per pair Click the icon to view the cost information) Steliu Cole has enough le capacity to accept a one-time-only special order from Montana Glasses for 20,000 pairs of sunglasses at $75 per pair. Stella Cole will not incur any variable marketing expenses for the ordet. Read the requirements signme OC. Wil Stella Cole's other customers find out about the lower sale price Stella Cole offered to Montana Glasses? If so, will these other customers demand lower sale prices? adules D. All of the above Home O E. None of the above ke a Qu Requirement 2. Stella Cole's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $75 is less than Stella Cole's $85 cost to make the sunglasses Revo asks you, as one of Stella Cole's staff accountants, to explain whether his analysis is correct. When deciding whether to accept a special order, we should compare the extra revenues we will receive against the Costs that we will incur whether or not we fill the order are Lo cur decision. This is why comparing the $75 price Montana Glasses offered us with our $as fotal cost of making and selling the sunglasses is Irrelevant Enter any number in the edit fields and then continue to relevant 3345930dea.png GO 25 of 10 (21 complete) This Test: 100 pts possible TH ules JTE Stella Cole Sunglasses sell for about 152 per pair. Suppose the company incurs the following average costs per pair (Click the icon to view the cost information ) Men Stolto Cole has enough idle capacity to accept a one-time-only special order from Montana Glasses for 20,000 pairs of sunglasses at $75 per pair. Stella Cole will not incur any variable marketing expenses for the order Read the requirements gnme amic! OC Wil Stela Colo's other customers find out about the lower sale price Stela Cole offered to Montana Glasses? If so, will these other customers demand tower sale prices? OD. All of the above lome O E None of the above Q Requirement 2. Stella Coles marketing manager, Jim Revo, argues against coping the special order because the offer price of $75 is less than Stela Cole's $16 cost to make the sunglasses Revo asks you, as one of Stalin Cole's staff accountants, to explain whether his analysis is correct When deciding whether to accept a special order, we should compare the extra revenues we will receive against the Costs that we will incur whether or not we fill the order are to our decision. This is why comparing total cost of making and selling the sunglasses in extra costs we will inour to fill the order extra faced costs we will incur to fill the order Enter any number in the edit fields and then continue to the next question total costs of making the sunglasses 5 845930d0ea.png about $152 per pair. Suppose the company incurs the following average costs per pair. ost information.) acity to accept a i Data Table sunglasses at penses for the ord por GUEST customers find out f so, will these a Direct materials. $ 38 Direct labor... 13 Variable manufacturing overhead.. 12 Variable marketing expenses 2. 20* Fixed manufacturing overhead $ 85 Total cost * $2,000,000 total fixed manufacturing overhead = 100,000 pairs of sunglasses marketing manage Revo asks you, as pffer price of $75 is correct. + ept a special order er or not we fill the the sunglasses is price Montana Gla Print Done fields and then continue to the next question. ? ELI ? B 3) Chapter 8, 9, 10 Time Remaining: 0 25 of 40 (21 complete) This T for about $152 per pair. Suppose the company incurs the following average costs per pair the cost information.) e capacity to accept a one-time-only special order from Montana Glasses for 20,000 pairs of sunglasses at $75 per pa 10 * Requirements th Fusion a 1. How would accepting the order affect Stella Cole's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Stella Cole's managers consider in deciding whether to accept the order? 2. Stella Cole's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $75 is less than Stella Cole's $85 cost to make the sunglasses. Revo asks you, as one of Stella Cole's staff accountants, to explain whether his analysis is correct. ole sed s than 08 whe Print Done soffere seifingungsses S 8. edit fields and then continue to the next question. ? A ))) B DOO OOD F4 i 44 > F3 F5 F6 F7 FB F FG $ % A & * Men nme TW Stella Cole Sunglasses sell for about S152 per pair, Suppose the company incurs the following average costs per pair Click the icon to view the cost information Stella Cole has enough idle capacity to accept a one-time-only special order from Montana Glasses for 20.000 pair of sunglasses at $75 per pair Stela Cole will not incur any variable marketing expenses for the order Read the requirements Requirement 1. How would accepting the order affect Stella Cole's operating incomo? In addition to the special orders affect on profits, what other (longor-form ales qualitative) factors should Stella 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 "o for any zero balances. Use parentheses or a minus sign to omes indicate a decrease in operating income from the special order) mic: a Qu Total Order Per Unit (20,000 units) Incremental Analysis of Special Sales Order Decision Revenue from special order Loss variable expense associated with the order Variable manufacturing costs Enter any number in the edit fields and then continue to the next question, Dee Stella Cole Sunglasses sell for about $152 per pair Suppose the company incurs the following average costs per pair Click the icon to view the cost information) Steta Cole has enough ide capacity to accept a one-time only special order from Montana Glasses for 20,000 pairs of sunglasses at 875 per poit. Stella Cole will not incur any variable marketing expenses for the order. Read the requirements Lese: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order In addition to determining the special order's effect on operating profits. Cole's managers also should consider the following: O A Will lowering the sale price tarnish Stelle Cole's image as a high-qually brand? O B. How will Stella Cole's competitors react? Will they retaliate by cutting their prices and starting a prion war? OC. Will Stella Cole's other customers find out about the lower sale price Stella Cole offered to Montana Glasses? If so, will these other customers demand lower sale prices? OD. All of the above OE. None of the above 50 inti Lab A This Question: 4 pts 25 of 40 (21 complete) This Test: 100 pts possible STAN ain Men . mnamic BUTH Stelia Cole Sunglasses sail for about $162 per pair. Suppose the company incurs the following average costs per pair Click the icon to view the cost information) Steliu Cole has enough le capacity to accept a one-time-only special order from Montana Glasses for 20,000 pairs of sunglasses at $75 per pair. Stella Cole will not incur any variable marketing expenses for the ordet. Read the requirements signme OC. Wil Stella Cole's other customers find out about the lower sale price Stella Cole offered to Montana Glasses? If so, will these other customers demand lower sale prices? adules D. All of the above Home O E. None of the above ke a Qu Requirement 2. Stella Cole's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $75 is less than Stella Cole's $85 cost to make the sunglasses Revo asks you, as one of Stella Cole's staff accountants, to explain whether his analysis is correct. When deciding whether to accept a special order, we should compare the extra revenues we will receive against the Costs that we will incur whether or not we fill the order are Lo cur decision. This is why comparing the $75 price Montana Glasses offered us with our $as fotal cost of making and selling the sunglasses is Irrelevant Enter any number in the edit fields and then continue to relevant 3345930dea.png GO 25 of 10 (21 complete) This Test: 100 pts possible TH ules JTE Stella Cole Sunglasses sell for about 152 per pair. Suppose the company incurs the following average costs per pair (Click the icon to view the cost information ) Men Stolto Cole has enough idle capacity to accept a one-time-only special order from Montana Glasses for 20,000 pairs of sunglasses at $75 per pair. Stella Cole will not incur any variable marketing expenses for the order Read the requirements gnme amic! OC Wil Stela Colo's other customers find out about the lower sale price Stela Cole offered to Montana Glasses? If so, will these other customers demand tower sale prices? OD. All of the above lome O E None of the above Q Requirement 2. Stella Coles marketing manager, Jim Revo, argues against coping the special order because the offer price of $75 is less than Stela Cole's $16 cost to make the sunglasses Revo asks you, as one of Stalin Cole's staff accountants, to explain whether his analysis is correct When deciding whether to accept a special order, we should compare the extra revenues we will receive against the Costs that we will incur whether or not we fill the order are to our decision. This is why comparing total cost of making and selling the sunglasses in extra costs we will inour to fill the order extra faced costs we will incur to fill the order Enter any number in the edit fields and then continue to the next question total costs of making the sunglasses 5 845930d0ea.png about $152 per pair. Suppose the company incurs the following average costs per pair. ost information.) acity to accept a i Data Table sunglasses at penses for the ord por GUEST customers find out f so, will these a Direct materials. $ 38 Direct labor... 13 Variable manufacturing overhead.. 12 Variable marketing expenses 2. 20* Fixed manufacturing overhead $ 85 Total cost * $2,000,000 total fixed manufacturing overhead = 100,000 pairs of sunglasses marketing manage Revo asks you, as pffer price of $75 is correct. + ept a special order er or not we fill the the sunglasses is price Montana Gla Print Done fields and then continue to the next question. ? ELI ? B 3) Chapter 8, 9, 10 Time Remaining: 0 25 of 40 (21 complete) This T for about $152 per pair. Suppose the company incurs the following average costs per pair the cost information.) e capacity to accept a one-time-only special order from Montana Glasses for 20,000 pairs of sunglasses at $75 per pa 10 * Requirements th Fusion a 1. How would accepting the order affect Stella Cole's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Stella Cole's managers consider in deciding whether to accept the order? 2. Stella Cole's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $75 is less than Stella Cole's $85 cost to make the sunglasses. Revo asks you, as one of Stella Cole's staff accountants, to explain whether his analysis is correct. ole sed s than 08 whe Print Done soffere seifingungsses S 8. edit fields and then continue to the next question. ? A ))) B DOO OOD F4 i 44 > F3 F5 F6 F7 FB F FG $ % A & *