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Melrose Sunglasses sell for about $157 per pair. Suppose that the company incurs the following average costs per pair: (Click the icon to view the

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Melrose Sunglasses sell for about $157 per pair. Suppose that the company incurs the following average costs per pair: (Click the icon to view the cost information.) Melrose has enough idle capacity to accept a one-time-only special order from Alaska Shades for 19.000 pairs of sunglasses at $84 per pair. Melrose will not incur any variable selling expenses for the order. Read the requirements. Requirement 1. How would accepting the order affect Melrose's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Melrose's managers consider in deciding whether to accept the order? Prepare the analysis to determine the effect on operating income. (Enter decreases to profits with a parentheses or minus sign.). \begin{tabular}{ll} Expected increase in revenues & sunglasses x \\ \hline Expected increase in expenses & sunglasses x \\ \hline \end{tabular} Expected in operating income Requirements 1. How would accepting the order affect Melrose's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Melrose's managers consider in deciding whether to accept the order? 2. Melrose's marketing manager, Peter White, argues against accepting the special order because the offer price of $84 is less than Melrose's $88 cost to make the sunglasses. White asks you, as one of Melrose's staff accountants, to explain whether his analysis is correct. What would you say? Data table

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