Hoover White Sunglasses sell for about $153 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 NYC Glasses for 19,000 pairs of sunglasses at 572 per pair. Hoover White will not incur any variable marketing expenses for the order Read the requirements Data Table X 1 Direct materials.... $ 38 en Direct labor. 12 V Variable manufacturing overhead... 8 th Variable marketing expenses 4 . les Fixed manufacturing overhead 20* $ 82 Total cost * $2,100,000 total fixed manufacturing overhead - 105,000 pairs of sunglasses Tde Print Done i X Requirements 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 $72 is less than Hoover White's $82 cost to make the sunglasses. Revo asks you, as one of Hoover White's staff accountants, to explain whether his analysis is correct. Print Done BS arinn er Requirement 1. How would accepting the order affect Hoover White's operating incomo? In addition to the special onder's effect on profits, what other (longer-term 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 "o for any zero balances Use parentheses or a minus sign to indicate a decrease in operating income from the social order Total Order (19,000 units) Per Unit Incremental Analysis of Special Bales Order Decision Revenue from special order Less variable expensessed with the order Variable manufacturing costs Contribution margin Less: Additional fed expenses associated with the order Increase (decrease in operating income from the special order