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Opal Kyler Sunglasses sell for about $145 per pair. Suppose the company incurs the following average costs per pair (Click the icon to view the

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Opal Kyler Sunglasses sell for about $145 per pair. Suppose the company incurs the following average costs per pair (Click the icon to view the oost information.) Opal Kyler has encugh idle capacity to accept a one-time-only special order from Alaska Glasses for 18,000 pairs of sunglasses at $93 per pair. Opal Kyler will not incur any variable marketing expenses for the order Read the requirements. Requirement 1. How would accepting the order affect Opal Kyler's operating income? In adcition to the special order's effect on profits, what other (longer-term qualitative) factors should Opal Kyler's managers consider in deciding whether to accept the order? Prepare an incremental analysls to detemine the speclal order's effect on operating income. (Enter a " for any zero balances, Use parentheses or a minus sign to indicate a decrease in operating income from the special order.) Total Order Incremental Analysis of Special Sales Order Decision Per Unit (18,000 units Revenue from special order Less variable expense associated with the order Variable manufacturing costs Contribution margin Less: Adcitional fixed expenses associated with the order Increase (decrease) in aperating income from the special order 1.How would accepting the order affect Opal Kyler's operating income? In addition to the special 60 14 order's effect on profits, what other (longer-term qualitative) factors should Opal Kyler's managers consider in deciding whether to accept the order? Direct labor. Variable manufacturing overhead Variable marketing expenses. 2. Opal Kyler's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $93 is less than Opal Kylers $105 cost to make the sunglasses. Revo asks you, as one of Opal Kyler's staff accountants, to explain whether his analysis is correct. 20 105 $2,100,000 total fixed manufacturing overhead/105,000 pairs of sunglasses Print Done Total cost ixed ex s associated with the order

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