Managerial Accounting Andrew Marmo | 2/4/18 12:19 PM Homework: Week 5 Homework (graded) Save Score: 0 of 10 pts 6 of 8 (4 complete) HW Score: 20.55%, 10.28 or 50 pts E8-19A (similar to) EQuestion Help Foster Rouse Sunglasses sell for about $125 per pair. Suppose the company incurs the following average costs per pair (Click the icon to view the cost information.) Foster Rouse has enough idle capacity to accept a one-lime-only special order from Washington Glasses for 17,000 pairs of sunglasses at S74 per pair. Foster Rouse will not incur any variable marketing expenses for the order Read the recuirements Requirement 1. How would accepting the order affect Foster Rouse's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Foster Rouse's managers consider in deciding whether to accept the order? Prepare an incremental analysis to determine the special orders 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) X. Total Order Data Table Incremental Analysis of Special Sales Order Decision Per Unit (17,000 units) Revenue from special order Less variable expense associated with the order Direct materials Direct labor Variable manufacturing overhead Variable marketing expenses Fxed manufacturing overhead Total cost $2,200,000 total fixed manufacturing overhead 38 Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order 10 25 84 88,000 pairs of sunglasses Enter any number in the edit fields and then click Check Answer Print Done Cl Check Answer remaining