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Hilton Preston Sunglasses sell for about $152 per pair. Suppose the company incurs the following average costs per pair B(Click the icon to view
Hilton Preston Sunglasses sell for about $152 per pair. Suppose the company incurs the following average costs per pair B(Click the icon to view the cost information.) Hilton Preston has enough idle capacity to accept a one-time-only special order from Washington Glasses for 17,000 pairs of sunglasses at $73 per pair. Hilton Preston will not incur any variable marketing expenses for the order Read the requirements Requirement 1. How would accepting the order affect Hilton Preston's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Hilton Preston's managers consider in deciding whether to accept the order? Prepare an incremental analysis to determine the special onder'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) Incremental Analysis of Special Sales Order Decision Per Unit Total Order (17,000 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 Help me solve this Video Get more help - Clear all Check answer fanc Eros
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