Newtown Sunglasses sell for about 5154 per pak Suppose that the company incurs the following average costs per pair (Click the loan to view the cost information) Newtown has enough idle capacity to accept a one time only special order from Water Shades for 17.000 pair of sunglasses at 580 per pal 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 langeform 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 der to profits with a parentheses or mission) 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 long-term sultative factors should Newtown's manos consider in deciding whether to accet the order? Choose from any list or enter any number in the input fields and then continue to the next question Newtown Sunglasses sell for about 5154 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 Water Shades for 17.000 pairs of sunglasses at 580 per pair Newtown will not incur any variable selling expenses the order Read the requirements 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. W Newtown's other customers find out about the lower sale price Newtown offered to Water Shades? If so, will these other customers demand lower sale prices? O B. How will Newtown's competitors react? Will they retaliate by cutting their prices and starting a price war? OC. We lowering the sale price tarnish Newtown's image as a high quality brand? OD. All of the above OL None of the above Requirement 2. Newtown's marketing manager, Peter Kyler,argues against accepting the special order because the offer price of 580 is less than Newtown's 58 cost to make the sunglasses Vierbeinstel len Newtown Sunglasses sell for about 5154 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 Water Shades for 17.000 pairs of sunglasses at 500 per pal Newtown will not incur any variable selling expenses for the order Read the requirements Requirement Z. Newtown's marketing manager, Peter Kylor, argues against accepting the special order because the other price of 30 is less than Newtown's 3 cost to make the sunglasses Kyler asks you, as one of Newtown's stall accountants, to explain whether his analysis is correct. What would you say? When deciding whether to accept a special order, we should come the C osts that we will incur whether or not we fill the order are to our decision. This is why comparing the 500 price Water Shades offered us with our 583 total cost of making the sunglasses is The additional revenues and the additional costs that we will incur to the Water Shades special order, we will incur only per pair that Water Shades offered. Therefore, we should the special orderare of additional cost per pair, which is the special order to than the 580 the company's Choose from any list or enter any number in the input fields and then continue to the next question Data Table Direct materials Direct labor Variable manufacturing overhead Variable selling expenses Fixed manufacturing overhead 3 l 1 0 0 % Total cost * $2,050,000 Total fixed manufacturing overhead / 102,500 Pairs of sunglasses Print Done i 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 Kyler, argues against accepting the special order because the offer price of $80 is less than Newtown's $83 cost to make the sunglasses. Kyler asks you, as one of Newtown's staff accountants, to explain whether his analysis is correct. What would you say? Print Done