Cole Sunglasses sell for about $195 per pair. Suppose the company incurs the following average costs per pair E: (Click the icon to view the cost information.) Cole has enough idle capacity to accept a one-time-only special order from California Glasses for 17.000 pairs of sunglasses at $97 per pair. Cole will not incur any variable marketing expenses for the order Requirements Data Table ecial order's effect on profits, what other (longer-term qualitative) Required factors Prepare parenth * If there is no expected change in the expense. Use Direct materials Direct labout Variable manufacturing overhead Variable marketing expenses.... Fixed manufacturing overhead Exped Exped Total cost F $2,400,000 total fixed manufacturing overhead/120,000 pairs of sunglasses Tot Exped Print Done In additi pole's managers consider in deciding whether to accept the order? In addition to determining the special order's effect on operating profits, Cole's managers also should consider the following: (Select all that apply) Enter any number in the edit helds and then continue to the next question Requirement 1. How would accepting the order affect Cole's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Cole's managers consider in deciding whether to accept the order? Prepare the analysis to determine the effect on operating income. (Enter a zero, "", in an input box if there is no expected change in the expense. Use parentheses or a minus sign for an expected decrease in operating income.) Cole nec Incremental Analysis of Special Sales Order Expected increase in revenues Expected increase in expenses: Variable manufacturing cost Fixed manufacturing costs Total expected increase in expenses Expected increase (decrease) in operating income In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Cole's managers consider in deciding whether to accept the order In addition to determining the special order's effect on operating profits. Cole's managers also should consider the following: (Select all that apply.) Enter a number in the fields and then contine th at in In addition to the special order's effect on profits, what other longer term qualitative) factors should Cole's managers consider in deciding whether to accept the order? In addition to determining the special order's effect on operating profits, Cole's managers also should consider the following: (Select all that apply) A. When should the equipment used to produce sunglasses be refurbished and at what cost? B. How will Cole's competitors react? Will they retaliate by cutting their prices and starting a price war? c. Will Cole's other customers find out about the lower sale price Cole offered to California Glasses? If so, will these other customers demand lower sale prices? D. Will lowering the sale price tarnish Cole's image as a high-quality brand? BC D Requirement 2. Cole's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $97 is less than Cole's $106 cost to make the sunglasses Revo asks you, as one of Cole's staff accountants, to write a memo explaining whether his analysis is correct plete Date To: Mr. Jim Revo, Marketing Manager From: Staff Accountant Subject: California Glasses special order F o r in the fields and then continue to the next question 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 the 597 price California Classes offered us with our $106 total cost of making and selling the sunglasses is 7. Our Specifically, we have enough capacity to produce the 20,000 extra pairs of sunglasses for California Glasses' special order without increasing our whether or not we accept the order, so these costs are Also, as you know, we will not incur any on the special order. These costs will be the same whether or not we make the additional 20,000 pairs of sunglasses for California Glasses, so these costs are extra The extra cost per pair of sunglasses. Therefore, we should to fill the special order are if we accept California Glasses' special order, we will incur the special order from California Glasses Enter any number in the edit Tields and then continue to the next