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Colo Sunglasses sell for about $170 per pair Suppose the company incurs the following average costs per pair 2 (Click the icon to view the
Colo Sunglasses sell for about $170 per pair Suppose the company incurs the following average costs per pair 2 (Click the icon to view the cost information.) Colo has enough idle capacity to accept a one-timo only special order from Master Glasses for 24,000 pairs of sunglasses at 888 per pair Colo will not incur any variable marketing expenses for the order Requirements 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, "o", 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.) Data table Cole 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 Direct materials $ 55 Direct labour 14 Variable manufacturing overhead 7 Variable marketing expenses. 4 Fixed manufacturing overhead 20. 100 Total cost * $2,300,000 total fixed manufacturing overhead / 115,000 pairs of sunglasses Print Done
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