Homework: Chapter 8 Homework (GRADE Hoover McKnight Sunglasses sell for about $153 per pair. Suppose the company incurs the following av DE Click the icon to view the cost information.) Hoover McKnight has enough ide capacity to accept a one-time-only special order from Alaska Glasses Read the requirements Requirement 1. How would accepting the order affect Hoover McKnight's operating incorne? In addition whether to accept the order? Prepare an incremental analysis to determine the special order's effect on operating income. (Enter a "O Total Orde Per Unit (23,000 uni Incremental Analysis of Special Sales Order Decision 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 Question 4, E8-22A (sim... Part 1 of 3 > HW Score: 10.83%, 2.17 of 20 points O Points: 0 of 3 Save following average costs per pair ska Glasses for 23,000 pairs of sunglasses at $75 per pair. Hoover McKnight will not incur any variable marketing expenses for the order. 0? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Hoover McKnights managers consider in deciding a mo. (Enter a "O" for any zero balances, Use parentheses or a minus sign to indicate a decrease in opernting income from the special order.) Total Order (23,000 units) Clear all Check answer Question 4, E8-2 Part 1 of 3 e following average costs per pair erm qualitative Alaska Glasses for 23,000 pairs of sunglasses at $75 per pair. Hoover McKnight will not in . - X to indicate a Data table 4 Direct materials.. 38 Direct labor.... 14 Variable manufacturing overhead. 9 Variable marketing expenses 20* Fixed manufacturing overhead $ 85 Total cost * $2,100,000 total fixed manufacturing overhead 105,000 pairs of sunglasses Done Print assos $75 per pair. Hoover McKnight will not in night's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative Requirements 1. How would accepting the order affect Hoover McKnight's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Hoover McKnight's managers consider in deciding whether to accept the order? 2. Hoover Mcknight's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $75 is less than Hoover Mcknight's $85 cost to make the sunglasses, Revo asks you, as one of Hoover McKnight's staff accountants, to explain whether his analysis is correct Print Done