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Hithon Root Sunglasses self for about $152 per pair. Suppose the company incurs the following average costs per pair: View the costinformation. Hilton Root has
Hithon Root Sunglasses self for about \$152 per pair. Suppose the company incurs the following average costs per pair: View the costinformation. Hilton Root has enough idle capacty to accept a one-time-only special onder from Alaska Glasses for 17,000 pairs of sunglasses at $70 per pair. Hillon Root will not incir any variable marketing expenses foc the order. Read the requirements. Requirement 1. How would accepting the order affect Hitton Roots operasing income? in addition to the special orders effect on profts, what other (longer-term qualtative) factors ahould Hiton Root's managers consider in deciding whether to accept the order? Prepare an incremental analysis to determine the special order's eflect on eperating income. (Entac a " 0 * for any zero balances Use parentheses or a minis sign to indicate a decrease in operatin income from the special order) Cost Information Requirements 1. How would ascepting the order affect Haton Root's operating income? in addition to the special order's effect on profts, what other (jonger-tem qualistive) factors should hiton Roors managers consider in deciding whether to accept the order? 2. Hilton Roots maneting manager, Nick Fernito, argues against accepting the special order because the offer price of $70 is less than Hition Roors $80 cost to make the sunglasses Ferritto asks you, as one of Hilton Roots staff acoountants, to explain whether his analyss is correct
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