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er 8 Homework Question 5, E8-24A (similar to) Part 1 of 3 HW Score: 33.59%, 8.4 of 25 points O Points: 0 of 3
er 8 Homework Question 5, E8-24A (similar to) Part 1 of 3 HW Score: 33.59%, 8.4 of 25 points O Points: 0 of 3 Jasper Stenback 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) Save Jasper Stenback has enough idle capacity to accept a one-time-only special order from Washington Glasses for 23,000 pairs of sunglasses at $71 per pair Jasper Stenback will not incur any variable marketing expenses for the order Read the requrements Requirement 1. How would accepting the order affect Jasper Stenback's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Jasper Stenback'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 hom the special order) Incremental Analysis of Special Sales Order Decision Per Unit Total Order (23,000 units) Revenue from special order Less variable expons 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
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