Opal Stenback Sunglasses sell for about $150 per pair. Suppose the company incurs the following average costs per pair: EEB (Click the icon to view the cost information.) Opal Stenback has enough idle capacity to accept a one-time-only special order from Nevada Glasses for 23,000 pairs of sunglasses at $79 per pair. Opal Stenback will not incur any variable marketing expenses for the order Read the requirements Requirement 1. How would accepting the order affect Opal Stenback's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Opal Stenback's managers consider in deciding whether to accept the order? Prepare an incremental analysis to determine the special order's effect on operating income. (Enter a O" for any zero balances. Use parentheses or a minus sign to indicate a decrease in operating income from the special order.) Total Order Data Table Incremental Analysis of Special Sales Order Decision Per Unit(23,000 units) Revenue from special order Less variable expense associated with the order Direct materials Direct labor Variable manufacturing overhead Variable marketing expenses. Fixed manufacturing overhead Total cost $2,000,000 total fixed manufacturing overhead / 80,000 pairs of sunglasses 38 Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the order 14 25. Enter any number in the edit fields and then click Check Answer Clear All remaining Opal Stenback Sunglasses sell for about $150 per pair. Suppose the company incurs the following average costs per pair: (Click the icon to view the cost information.) Opal Stenback has enough idle capacity to accept a one-time-only special order from Nevada Glasses for 23,000 pairs of sunglasses at $79 per pair. Opal Stenback will not incur any variable marketing expenses for the order Read the requirements Requirement 1. How would accepting the order affect Opal Stenback's operating income? In addition to the special order's effect consider in deciding whether to accept the order? Data Table Prepare an incremental analysis to determine the special order's effect on operating income. (Enter a "O" for any zero balances. Use order.) Total Order Direct materials Direct labor. Variable manufact 38 Incremental Analysis of Special Sales Order Decision Per Unit(23,000 units) 14 Revenue from special order Less variable expense associated with the order: Requirements Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order 1. How would accepting the order affect Opal Stenback's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Opal Stenback's managers consider in deciding whether to accept the order? 2. Opal Stenback's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $79 is less than Opal Stenback's $88 cost to make the sunglasses. Revo asks you, as one of Opal Stenback's staff accountants, to explain whether his analysis is correct. Enter any number in the edit fields and then click Check Answer Clear Pint Done