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Parkland Sunglasses soll for about 5153 por pale Suppose that the company incurs the following average conta per pale 2. Click the icon to view

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Parkland Sunglasses soll for about 5153 por pale Suppose that the company incurs the following average conta per pale 2. Click the icon to view the cost information) Parkland has enough idle capacity to accept a one time-only special order from Novada Shades for 24.000 pair of sunglasses at 505 per per. Parkland will not incur any variable selling expenses for the order Read the requirements Requirement. How would accepting the order affect Parkland's operating income? In addition to the special order's effect on profits what other (longer tom qualitative) factors should Parklands 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 on minus Expected increase in revenues sunglasses Expected increase inexpenses sunglasses Expected in operating income a - X Data Table el Direct materials $ 38 16 Direct labor Variable manufacturing overhead Variable selling expenses ad rk 8 2 $25 Fixed manufacturing overhead u $ 89 Total cost 79 * $2,300,000 Total fixed manufacturing overhead / 92,000 Pairs of sunglasses Print Done - X Requirements 1. How would accepting the order affect Parkland's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Parkland's managers consider in deciding whether to accept the order? 2. Parkland's marketing manager, Peter Kyler, argues against accepting the special order because the offer price of $85 is less than Parkland's $89 cost to make the sunglasses Kyler asks you, as one of Parkland's staff accountants, to explain whether his analysis is correct. What would you say? Print Done

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