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Newtown Sunglasses sell for about $151 per pair. Suppose that the company incurs the following average costs per pair (Click the icon to view the

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Newtown Sunglasses sell for about $151 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 Montana Shades for 17.000 pairs of sunglasses at $81 per pair. Newtown will 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 Choose from any list or enter any number in the input fields and then click Check Answer Clear All Check Answer Data Table Direct materials $ 40 Direct labor 16 5 Variable manufacturing overhead Variable selling expenses 2 $20 83 Fixed manufacturing overhead $ Total cost * $2,050,000 Total fixed manufacturing overhead / 102,500 Pairs of sunglasses Print Done v next go to your STUDY Pran. Requirements 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? 2. Newtown's marketing manager, Peter Smith, argues against accepting the special order because the offer price of $81 is less than Newtown's $83 cost to make the sunglasses. Smith asks you, as one of Newtown's staff accountants, to explain whether his analysis is correct. What would you say

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