Foster Rouse Sunglasses sell for about $145 per pair. Suppose the company incurs the following average costs per pair (Click the icon to view the cost information.) Foster Rouse has enough idle capacity to accept a one-time-only special order from Water Glasses for 21,000 pairs of sunglasses at $60 per pair. Foster Rouse will not incur any variable marketing expenses for the order. Read the requirements. Requirement 1. How would accepting the order affect Foster Rouse's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Foster Rouse'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.) Total Order Data Table Per Unit (21,000 units) Incremental Analysis of Special Sales Order Decision Revenue from special order Less variable expense associated with the order: Direct materials $ 40 Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Direct labor 12 Variable manufacturing overhead 7 Variable marketing expenses 3 25 Fixed manufacturing overhead $ 87 Total cost ...................... * $2,300,000 total fixed manufacturing overhead + 92,000 pairs of sunglasses Requirements Print Done 1. How would accepting the order affect Foster Rouse's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Foster Rouse's managers consider in deciding whether to accept the order? . Foster Rouse's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $60 is less than Foster Rouse's $87 cost to make the sunglasses. Revo asks you, as one of Foster Rouse's staff accountants, to explain whether his analysis is correct. Print Done