i Data Table S 44 Direct materials $ 13 Direct labor 7 Variable manufacturing overhead 3 Variable selling expenses $25* Fixed manufacturing overhead $ 92 Total cost * $2,150,000 Total fixed manufacturing overhead / 86,000 Pairs of sunglasses Print Done pris! Tolman Sunglasses soll for about $155 per pair. Suppose that the company incurs the following average costs per pair (Click the icon to view the cost information) Tolman has enough idle capacity to accept a one-time-only special order from Montana Shades for 25.000 pairs of sunglasses at $85 per pair. Toman will not incur any variable selling expenses for the order Read the requirements OB. Will lowering the sale price tarnish Tolman's image as a high-quality brand? C. How will Tolman's competitors react? Will they retaliate by cutting their prices and starting a price war? D. All of the above O E. None of the above Requirement 2. Tolman's marketing manager, Peter Stenback, argues against accepting the special order because the offer price of $85 is less than Tolman's $92 cost to make the sunglasses. Stenback asks you, as one of Tolman's staff accountants, to explain whether his analysis is correct. What would you say? When deciding whether to accept a special order, we should compare the that we will incur whether or not we fill the order are to our decision. This is why comparing the $85 price Montana Shades offered us with our $92 total cout of making the sunglasses is The additional revenues and the additional costs that we will incur to fill the special order are If we accept the Montana Shades special order, we will incur only of additional cost per pair, which is than the ses the special order to per pair that Montana Shades offered. Therefore, we should the company's Costs operating income Choose from any list or enter any number in the input fields and then continue to the next