Please do all requirements! Requirements and data table listed

Hoover Rouse Sunglasses sell for about $125 per pair. Suppose the company incurs the following average costs per pair:

Data Table

	Direct materials	$38
	Direct labor	12
	Variable manufacturing overhead	10
	Variable marketing expenses	3
	Fixed manufacturing overhead	16	*
	Total cost	$79
* $2,300,000 total fixed manufacturing overhead / 143,750 pairs of sunglasses

Rouse has enough idle capacity to accept a one-time-only special order from Colorado Glasses for 17,000 pairs of sunglasses at

$67 per pair. Hoover Rouse will not incur any variable marketing expenses for the order.

REQUIREMENTS

1.	How would accepting the order affect Hoover Rouse's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Hoover Rouse's Managers consider deciding whether to accept the order?
2.	HooverRouse's marketing manager Jum Revo argues against accepting the special order because the offer price of $67 is less than Hoover Rouse's $79 cost to make the sunglasses, Revo asks ou as one of the staff accountants, to explain whether his analysis is correct.

Thank you

Hoover Rouse Sung asses sell for about $125 per pair. Suppose the company incurs the following average costs per pair: (Click the icon to view the cost information.) Hoover Rouse has enough idle capacity to accept a one-time-only special order from Colorado Glasses for 17,000 pairs of sunglasses at $67 per pair. Hoover Rouse will not incur any variable marketing expenses for the order Read the requirements Requirement 1. How would accepting the order affect Hoover Rouse's operating income? In addition to the special order's effect on profits, what other (longer-term qual tative) factors should Hoover Rouse's managers consider in deciding whether to accept the order? Prepare an incremental analysis to detenmine the special order's effect on operating income. (Enter a "0 for any z the special order.) Total Order Data Table Incremental Analysis of Special Sales Order Decision Per Unit 17,000 units) Revanue 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 $2.300,000 total fixed manufacturing overhead 38 12 10 Variable manufacturing costs Contribution margin Less Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order 16. 79 6 Requirements 143,750 pairs of sung asses Print Done 1. How would accepting the order affect Hoaver Rouse's operating income? In addition to the special order's effect on profits, what other (onger-term qualitative) factors should Hoover Rouse's managers consider in deciding whether to accept the order? 2. Hoover Rouse's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $67 is less than Hoover Rouse's $79 cost to make the sunglasses Revo asks you, as one of Hoover Rouse's staff accountants, to explain whether his analysis is correct Clear Al Check