Hilton Kyler Sunglasses sell for about $151 per pair. Suppose the company incurs the followrng average costs per pair: a (Click the icon to View the cost information.) Hilton Kyler has enough idle capacity to accept a one-time-only specral order from Alaska Glasses for 20,000 pairs of sunglasses at $72 per pair. Hilton Kyler will not incur any variable marketing expenses for the order. Read the uirements. Requirement 1. How would accepting the order affect Hilton Kyler's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Hilton Kyler's managers consider in deciding whetl 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 Incremental Analysis of Special Sales Order Decision Per Unit (20,000 units) Revenue from special order Less variable expense associated with the order: Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Data table Direct materials ....................... $ 38 Requirements Direct labor. .......................... 11 Variable manufacturing overhead ........ 9 1. How would accepting the order affect Hilton Kyler's operating income? in addition to the Variable marketing expenses """""" 4 special order's effect on profits, what other (longer-term qualitative) factors should Hilton Kyles Fixed manufacturing overhead __________ 20' managers consider in deciding whether to accept the order? $ 82 2. Hilton Kyler's marketing manager, Jim Revo, argues against accepting the special order because Total cost ............................ = the otter price of $72 is less than Hilton Kyler's $82 cost to make the sunglasses. Revo asks you, * 52,200,000 total xed manufacturing overhead + as one of Hilton Kyler's staff accountants, to explain whether his analysis is correct. 110,000 pairs of sunglasses me solve this Video Get more