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Hampshire Sunglasses sell for about $150 per pair. Suppose that the company incurs the following average costs per pair: (Click the icon to view the
Hampshire Sunglasses sell for about $150 per pair. Suppose that the company incurs the following average costs per pair: (Click the icon to view the cost information.) Hampshire has enough idle capacity to accept a one-time-only special order from Water Shades for 26,000 pairs of sunglasses at $85 per pair. Hampshire will not incur any variable selling expenses for the order. Requirement 1. How would accepting the order affect Hampshire's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Hampshire's managers consider in deciding whether to accept the order? Prepare the analysis to determine the effect on operating income. (Enter decreases to profits with a parentheses or minus sign.) Expected increase in revenues sunglasses x Expected increase in expenses sunglasses x Data table
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