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Hoover White Sunglasses sell for about $150 per pair. Suppose the company incurs the following average costs per pair: (Click the icon to view
Hoover White Sunglasses sell for about $150 per pair. Suppose the company incurs the following average costs per pair: (Click the icon to view the cost information.) Hoover White has enough idle capacity to accept a one-time-only special order from Alaska Glasses for 16,000 pairs of sunglasses at $61 per pair. Hoover White will not incur any variable marketing expenses for the order. Read the requirements. qualitative) factors should Hoover White's managers consider in deciding whether to accept the order? Prepare an incremental analysis to determine the special order's effect on operating income. (Enter a "0" for any zer indicate a decrease in operating income from the special order.) nces. Use parentheses or a minus sign to Incremental Analysis of Special Sales Order Decision Per Unit Total Order (16,000 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
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