Hampshire Sunglasses sell for about $156 per pair. Suppose that the company incurs the following average costs per pair: EE (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 $83 per pair. Hampshire will not incur any variable selling expenses for the order. Read the requirements. 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 in operating income i Requirements 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? 2. Hampshire's marketing manager, Peter Rouse, argues against accepting the special order because the offer price of $83 is less than Hampshire's $92 cost to make the sunglasses. Rouse asks you, as one of Hampshire's staff accountants, to explain whether his analysis is correct. What would you say? Print Done Data Table Direct materials Direct labor Variable manufacturing overhead 13 10 Variable selling expenses 25 Fixed manufacturing overhead Total cost $2,200,000 Total fixed manufacturing overhead/ 88,000 Pairs of sunglasses 92