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Can someone please help answer this question: at the bottom is the data table Kyler Sunglasses sell for about $152 per pair. Suppose the company

Can someone please help answer this question: at the bottom is the data table

Kyler Sunglasses sell for about $152 per pair. Suppose the company incurs the following average costs per pair: Sylvan Kyler has enough idle capacity to accept a one-time-only special order from NYC Glasses for 20,000 pairs of sunglasses at $69 per pair. Sylvan Kyler will not incur any variable marketing expenses for the order.

Requirement 1. How would accepting the order affect Sylvan Kyler's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Sylvan Kyler'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 Incremental Analysis of Special Sales Order Decision Per Unit (20,000 units)

Incremental Analysis of Special Sales Order Decision

Per Unit

(20,000 units)

Revenue from special order

______

_______

Less variable expense associated with the order:

______

_______

Variable manufacturing costs

_______

_______

Contribution margin

_____

Less: Additional fixed expenses associated with the order

_________

Increase (decrease) in operating income from the special order

_________

DATA TABLE

Direct materials $38

Direct labor 13

Variable manufacturing overhead 10

Variable marketing expenses 3

Fixed manufacturing overhead 20

* Total cost $84 * $2,000,000 total fixed manufacturing overhead / 100,000 pairs of sunglasses

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