Hoover White Sunglasses sell for about $152 per pair. Suppose the company incurs the following average costs per pair: EE (Click the icon to view the cost information.) Hoover White has enough idle capacity to accept a one-time-only special order from Rolling Glasses for 19,000 pairs of sunglasses at $80 per pair. Hoover White will not incur any variable marketing expenses for the order, Read the requirements. Requirement 1. How would accepting the order affect Hoover White's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) facto 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 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 (19,000 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 g 18 Requirements 2 is er cid 1. How would accepting the order affect Hoover White's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Hoover White's managers consider in deciding whether to accept the order? 2. Hoover White's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $80 is less than Hoover White's $106 cost to make the sunglasses. Revo asks you, as one of Hoover White's staff accountants, to explain whether his analysis is correct. d er ra Print Done X Data table 6 3 Direct materials $ 60 Direct labor 12 Variable manufacturing overhead Variable marketing expenses 25* Fixed manufacturing overhead $ 106 Total cost * $2,200,000 total fixed manufacturing overhead + 88,000 pairs of sunglasses Print Done