Foster Preston Sunglasses sell for about $135 per pair. Suppose the company incurs the following average costs per pair: (Click the icon to view the cost information.) Foster Preston has enough idle capacity to accept a one-time-only special order from Washington Glasses for 16,000 pairs of sunglasses at $67 per pair. Foster Preston will not incur any variable marketing expenses for the order. Read the requirements. Requirement 1. How would accepting the order affect Foster Preston's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Fos 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 operati income from the special order.) Total Order Incremental Analysis of Special Sales Order Decision Per Unit Revenue from special order 67 (16,000 units) 1072000 Less variable expense 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 Foster Preston Sunglasses sell for al (Click the icon to view the cost in Foster Preston has enough idle capa marketing expenses for the order. Read the requirements. Data table Direct materials.. Direct labor.... r pair: 0 pairs of sunglasses at $67 per pair. Foster Preston will not incur any varial $ 42 14 9 3 order's effect on profits, what other (longer-term qualitative) factors should F 25* o balances. Use parentheses or a minus sign to indicate a decrease in open 93 Requirement 1. How would acceptin Preston's managers consider in deci Prepare an incremental analysis to d income from the special order.) Incremental Analysis of Sp Revenue fro Variable manufacturing overhead. Variable marketing expenses... Fixed manufacturing overhead Total cost.. * $2,100,000 total fixed manufacturing overhead + 84,000 pairs of sunglasses Less variable Requirements Variable Contribution Less: Additi Increase (de 1. How would accepting the order affect Foster Preston's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Foster Preston's managers consider in deciding whether to accept the order? 2. Foster Preston's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $67 is less than Foster Preston's $93 cost to make the sunglasses. Revo asks you, as one of Foster Preston's staff accountants, to explain whether his analysis is correct. Print Done