K his Video Arthur Smith Sunglasses sell for about $154 per pair. Suppose the company incurs the following average costs per pair (Click the icon to view the cost information.) ArthurSmithhas enough idle capacity to accept a one-time-only special order from Water Glassesfor 19,000pairs of sunglasses at $63per pair. ArthurSmithwill not incur any variable marketing expenses for the order. Read the requirements Requirement 1. How would accepting the order affect Arthur Smith's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Arthur Smith'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 "0" 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 Per Unit (19,000 units) Revenue from special order Less variable expense associated with the order Data table Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Requirements 1. How would accepting the order affect Arthur Smith's operating income? In addition to the special order's effect on profits, what other conger-term qualitative) factors should Arthur Smith's managers consider in deciding whether to accept the order? 2. Arthur Smith's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $63 is less than Arthur Smith's $90 cost to make the sunglasses Revo asks you, as one of Arthur Smith's staff accountants, to explain whether his analysis is comect Direct materials 30 Direct labor 14 Variable manufacturing overhead 3 Variable marketing expenses 25 Fixed manufacturing overhead 00 Total cost $2,300,000 total fixed manufacturing overhead 92,000 pairs of sunglasses Print Done