Newtown Sunglasses sell for about $151 per pair. Suppose that the company incurs the following average costs per pair BF: (Click the icon to view the cost information.) Newtown has enough idle capacity to accept a one-time-only special order from Alaska Shades for 20,000 pairs of sunglasses at $80 per pair. Newtown will not in any variable selling expenses for the order. Read the requirements. Data Table Requirement 1. How would accep rofits, what other (longer-term qualitative) factors should Newtown Prepare the analysis to determine Direct materials Expected increase in revenues Direct labor Expected increase in expenses Variable manufacturing overhead Variable selling expenses Expected in operati Fixed manufacturing overhead or in deciding whether to accep In addition to the special order's ef order? Total cost * $1,950,000 Total fixed manufacturing overhead/78,000 Pairs of sunglasses O A. How will Newtown's compe her customers demand lowers OB. Will Newtown's other custo prices? Print Done O C. Will lowering the sale price O D. All of the above 25. Choose from any list or enter any number in the input fields and then continue to the next question. Newtown Sunglasses sell for about 5151 per pair. Suppose that the company incurs the following average costs per pair Click the icon to view the cost information.) Newtown has enough idle capacity to accept a one-time-only special order from Alaska Shades for 20,000 pairs of sunglasses at $80 per pair. Newtown wil not incur any variable selling expenses for the order. Read the requirements Requirement 1. How would accepting the order affect Newtown's operating income? In addition to the special order's effect on profits, what other longer term qualitative) factors should Newtown'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.) Expected increase in revenues sunglasses Expected increase in expenses sunglasses Expected in operating income In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Newtown's managers consider in deciding whether to accept the order? O A. How will Newtown's competitors react? Will they retaliate by cutting their prices and starting a price war? O B, Will Newtown's other customers find out about the lower sale price Newtown offered to Alaska Shades? If so, will those other customers demand lower sale prices? OC. Will lowering the sale price tarnish Newtown's image as a high-quality brand? OD. All of the above Choose from any list or enter any number in the input fields and then continue to the next question. Newtown Sunglasses sell for about 5151 per pair. Suppose that the company Incurs the following average costs per pair Click the icon to view the cost information.) Newtown has enough idle capacity to accept a one-time-only special order from Alaska Shades for 20,000 pairs of sunglasses at $80 per pair. Newtown will not incur any variable selling expenses for the order. Read the requirements. prices? O C. Will lowering the sale price tarnish Newtown's image is a high-quality brand? OD. All of the above O E. None of the above Requirement 2. Newtown's marketing manager, Peter Root, argues against accepting the special order because the offer price of $80 is less that Newtown's 568 Cost to make the sunglasses. Root asks you, as one of Newtown's staff accountants, to explain whether his analysis is correct. What would you say? When deciding whether to accept a special order, we should compare the Costs that we will incur whether or not we fill the order are to our decision. This is why comparing the 500 price Alaska Shades offered us with our SBB total cost of making the sunglasses is The additional revenues and the additional costs that we will incur to fill the special order are the Alaska Shades special order, we will incur only $ of additional cost per pair, which is per pair that Alaska Shades offered. Therefore, we should the special order to operating income if we accept than the $80 the company's Choose from any list or enter any number in the input fields and then continue to the next