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Hoover White Sunglasses sell for about $154 per pair Suppose the company Incurs the following average costs per pair 118 Click the icon to view

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Hoover White Sunglasses sell for about $154 per pair Suppose the company Incurs the following average costs per pair 118 Click the icon to view the cost information) Hoover White has enough ide capacity to accept a one-time-only special order from LA Glasses for 22.000 pairs of sunglasses at $68 per part 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) factors should Hoover White's managers consider in deciding whether to accept the order? for any zero balances. Use parentheses or a minus sign lo indicate a decrease in operating income from the special order) Prepare an incremental analysis to determine the special order's effect on operating income. (Enter Total Order Incremental Analysis of Special Sales Order Decision Per Unit 22.000 units Revenue from special order Less variable expense associated with the order Variable manufacturing costs Contribution margin Less Additional food expenses associated with the order Increase (decrease in operating income from the special order Data Table Direct materials Direct labor Variable manufacturing overhead. Variable marketing expenses. Fixed manufacturing overhead Total cost. 78 * $2,200,000 total fixed manufacturing overhead / 137,500 pairs of sunglasses 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 $68 is less than Hoover White's $78 cost to make the sunglasses Revo asks you, as one of Hoover White's staff accountants, to explain whether his analysis is correct

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