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Data table Opal Preston Sunglasses sell for about $125 per pair. Suppose the company incurs the following average costs per pair: (Click the icon to
Data table Opal Preston Sunglasses sell for about $125 per pair. Suppose the company incurs the following average costs per pair: (Click the icon to view the cost information.) Opal Preston has enough idle capacity to accept a one-time-only special order from Nevada Glasses for 16,000 pairs of sunglasses at $79 per pair. Opal Preston will not incur any variable marketing expenses for the order. Read the requirements. Requirement 1. How would accepting the order affect Opal Preston's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Opal Preston'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.) Requirements 1. How would accepting the order affect Opal Preston's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Opal Preston's managers consider in deciding whether to accept the order? 2. Opal Preston's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $79 is less than Opal Preston's $87 cosifto make the sunglasses. Revo asks you, as one of Opal Preston's staff accountants, to explain whether his analysis is correct
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