Jasper Rouse 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.) Jasper Rouse has enough idle capacity to accept a one-time-only special order from LA Glasses for 17,000 pairs of sunglasses at $68 per pair. Jasper Rouse will not incur any variable marketing expenses for the order. Read the requirements Per Unit Requirement 1. How would accepting the order affect Jasper Rouse's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Jasper Rouse'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 special order) Total Order Incremental Analysis of Special Sales Order Decision (17,000 units) 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 In addition to determining the special order's effect on operating profits, Rouse's managers also should consider the following: O A. Will lowering the sale price tarnish Jasper Rouse's image as a high-quality brand? Enter any number in the edit fields and then continue to the next question Jasper Rouse 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.) Jasper Rouse has enough idle capacity to accept a one-time-only special order from LA Glasses for 17,000 pairs of sunglasses at $68 per pair. Jasper Rouse will not incur any variable marketing expenses for the order. Read the requirements Per Unit Requirement 1. How would accepting the order affect Jasper Rouse's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Jasper Rouse'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 special order) Total Order Incremental Analysis of Special Sales Order Decision (17,000 units) 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 In addition to determining the special order's effect on operating profits, Rouse's managers also should consider the following: O A. Will lowering the sale price tarnish Jasper Rouse's image as a high-quality brand? Enter any number in the edit fields and then continue to the next
