E25-11 (similar to) Question Help sider in Melrose Sunglasses sell for about $158 per pair. Suppose that the company incurs the following average costs per pair: (Click the icon to view the cost information.) Melrose has enough idle capacity to accept a one-time-only special order from Rolling Shades for 23,000 pairs of sunglasses at $84 per pair. Melrose will not incur any variable selling expenses for the order. Read the requirements, Data Table Requirement 1. How would accepting the order affect Melrose's operating income? In addition to the special order deciding whether to accept the order? Prepare the analysis to determine the effect on operating income. (Enter decreases to profits with a parentheses or Direct materials $ 39 Expected increase in revenues sunglasses Direct labor 16 Expected increase in expenses sunglasses Variable manufacturing overhead 9 Variable selling expenses 2 Expected in operating income $20 Fixed manufacturing overhead 86 Requirements Total cost - $1,950,000 Total fixed manufacturing overhead / 97,500 Pairs of sunglasses Print Done 1. How would accepting the order affect Melrose's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Melrose's managers consider in deciding whether to accept the order? 2. Melrose's marketing manager, Peter White, argues against accepting the special order because the offer price of $84 is less than Melrose's $86 cost to make the sunglasses. White asks you, as one of Melrose's staff accountants, to explain whether his analysis is correct. What would you Cho y' E25-20 (similar to) Question Help Naturalplus processes organic milk into plain yogurt. (Click the icon to view additional information.) Should Naturalplus continue to sell only the gallon-size plain yogurt (sell as is) or convert the plain yogurt into individual-size portions of fruited yogurt (process further)? Why? (Use a minus sign or parentheses for amounts that are typically shown enclosed in parentheses in a sell or process further decision.) A X More Info Process Further Costs Sell As Is Difference Expected revenue from selling by the gallon Expected revenue from selling individual portions Additional costs of selling as is by the gallon Additional costs of processing individual portions Naturalplus sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $820, yields 300 gallons of plain yogurt. Naturalplus sells the one-gallon tubs for $9 each, and spends $0.18 for each plastic tub. Naturalplus has recently begun to reconsider its strategy. Naturalplus wonders if it would be more profitable to sell individual-size portions of fruited organic yogurt at local food stores. Naturalplus could further process each batch of plain yogurt into 6,400 individual portions (3/4 cup each) of fruited yogurt. A recent market analysis indicates that demand for the product exists. Naturalplus would sell each individual portion for $0.52. Packaging would cost $0.11 per portion, and fruit would cost $0.08 per portion. Fixed costs would not change. Total net revenue Print Done