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Foster Stenback Sunglasses sell for about $152 per pair. Suppose the company incurs the following average costs per pair: (Click the icon to view the

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Foster Stenback Sunglasses sell for about $152 per pair. Suppose the company incurs the following average costs per pair: (Click the icon to view the cost information.) Foster Stenback has enough idle capacity to accept a one-time-only special order from LA Glasses for 19,000 pairs of sunglasses at $83 per pair. Foster Stenback will not incur any variable marketing expenses for the order. Read the requirements. Requirements 1. How would accepting the order affect Foster Stenback's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Foster Stenback's managers consider in deciding whether to accept the order? 2. Foster Stenback's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $83 is less than Foster Stenback's $92 cost to make the sunglasses. Revo asks you, as one of Foster Stenback's staff accountants, to explain whether his analysis is correct. Requirement 1. How would accepting the order affect Foster Stenback's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Foster Stenback's managers consider in deciding whether to accept the order? Prepare an incremental analysis to dtermine 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.)

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