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Jasper Mcknight Sunglasses sell for about $150 per pair. Suppose the company incurs the following average costs per pair (Click the icon to view the

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Jasper Mcknight Sunglasses sell for about $150 per pair. Suppose the company incurs the following average costs per pair (Click the icon to view the cost information) Jasper McKnight has enough idle capacity to accept a one-time-only special order from Arizona Glasses for 17.000 pairs of sunglasses at $63 per pair, Jasper Mcknight will not incur any variable marketing expenses for the order Read the requirements Requirement 1. How would accepting the order affect Jasper McKnight's operating income? In addition to the special order's effect on profits, what other longer-term qualitative) factors should Jasper Mcknight's managers consider in deciding whether to accept the order? Prepare an incremental analysis to determine the special order's effect on operating income Entera o for any zero balances. Use parentheses or a minus sign to indicate a decrease in operating income from the special order) Total Order (17,000 units) Per Unit Incremental Analysis of Special Sales Order Decision 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 Direct materials Direct labor Variable manufacturing overhead..... Variable marketing expenses ........ Fixed manufacturing overhead..... Total cost....... * $2,100,000 total fixed manufacturing overhead / 84,000 pairs of sunglasses 1. How would accepting the order affect Jasper Mcknight's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Jasper McKnight's managers consider in deciding whether to accept the order? 2. Jasper Mcknight's marketing manager, Nick Ferritto, argues against accepting the special order because the offer price of $63 is less than Jasper McKnight's $88 cost to make the sunglasses. Ferritto asks you, as one of Jasper McKnight's staff accountants, to explain whether his analysis is correct

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