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E25-11 (similar to) Question Help Ashley Speer Sunglasses sell for about 156 per pair. Suppose that the company Incurs the following average costs per pair Click the icon to viow the cost information.) Ashley Speer has enough idle capacity to accept a one-time-only special order from Colorado Shades for 24,000 pairs of sunglasses at $83 per pair. Ashley Speer will not incur any variable selling expenses for the order Read the requirements Requirement 1. How would accepting the order affect Ashley Spear's operating incomo? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Ashley Spoor'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 Expected increase in expenses sunglasses Expected in operating incomo Requirements ed in ed ind ted 1. How would accepting the order affect Ashley Speer's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Ashley Speer's managers consider in deciding whether to accept the order? 2. Ashley Spear's marketing manager, Peter Rouse, argues against accepting the special order because the offer price of $83 is less than Ashley Speer's $87 cost to make the sunglasses Rouse asks you, as one of Ashley Speer's staff accountants, to explain whether his analysis is correct. What would you say? Print Done Data Table 1 Direct materials 39 Direct labor 11 cial 3 Variable manufacturing overhead 9 Variable selling expenses 3 $25* Fixed manufacturing overhead 87 Total cost * $2,150,000 Total fixed manufacturing overhead / 86,000 Pairs of sunglasses g Print Done