III E8-19A (similar to) Question Help Jazz Sunglasses sell for about $195 per pair. Suppose the company incurs the following average costs par pair (Click the icon to view the cost information.) Jazz has enough idle capacity to accept a one-time-only special order from Master Glasses for 19,000 pairs of sunglasses at $101 per pair. Jazz will not incur any variable marketing expenses for the order Requirements Requirement 1. How would accepting the order affect Jazz's operating income? In addition to the special order's effect on profits, what other longer-term qualitative) factors should Jazz's managers consider in deciding whether to accept the order? Prepare the analysis to determine the effect on operating income (Enter a zero, "O", in an input box if there is no expected change in the expense. Use parentheses or a minus sign for an expected decrease in operating income.) Incremental Analysis of Special Sales Order Expected increase in revenues Expected increase in expenses Variable manufacturing cost Fixed manufacturing costs Total expected increase in expenses Expected increase (decrease) in operating income Enter any number in the edit fields and then click Check Answer 5 parts Win Clear All Check Answer remaining 111 es sell for about $195 per pair. Suppose the company incurs the following average costs per pair icon to view the cost information.) h idle capacity to accept a one-time-only special order from Master Glasses for 19,000 pairs of sunglasses at $101 per pair Ja ng expenses for the order. 0 Data Table what other How would accepting azz's managers consi ysis to determine the a minus sign for an ange in the Increm ase in revenues ase in expenses nufacturing cost Facturing costs Direct materials 55 Direct labour 19 Variable manufacturing overhead 12 Variable marketing expenses 3 Fixed manufacturing overhead 20 Total cost. $ 109 * $2,700,000 total fixed manufacturing overhead / 135,000 pairs of sunglasses ed increase in expert se (decrease) in op Print Done in the edit fields and then click Check Answer Questi es sell for about $195 per pair Suppose the company incurs the following average costs per pair icon to view the cost information.) gh idle capacity to accept a one-time-only special order from Master Glasses for 19,000 pairs of sunglasses at $101 per pair. Jazz will not ing expenses for the order . How would azz's manag mlysis to dete a minus si Requirements (longer-ter - X be expense. ease in reve 1. How would accepting the order affect Jazz's operating income? In addition to the special order's effect on profits what other (longer-term qualitative) factors should Jazz's managers consider in deciding whether to accept the order? 2. Jazz's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $101 is less than Jazz's $109 cost to make the sunglasses. Revo asks you, as one of Jazz's staff accountants, to write a memo explaining whether his analysis is correct ase in exp anufacturing facturing a ed increas Print Done se (decrease) in operating income in the edit fields and then click Check
