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Please help with the first requirement which is preparing an incremental analysis as seen at the bottom of the first picture. Stella Rouse Sunglasses sell
Please help with the first requirement which is preparing an incremental analysis as seen at the bottom of the first picture. Stella Rouse Sunglasses sell for about $152 per pair. Suppose the company incurs the following average costs per pair (Click the icon to view the cost information) Stella Rouse has enough idle capacity to accept a one-time-only special order from Colorado Glasses for 23,000 pairs of sunglasses at $72 per pair Stella Rouse will not incur any variable marketing expenses for the order. Read the requirements Requirement 1. How would accepting the order affect Stella Rouse's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Stella Rouse'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 "0" for any zero balances. Use parentheses or a minus sign to indicate a decrease in operating income from the special order.) Total Order (23,000 units) Per Unit Incremental Analysis of Special Sales Order Decision Revenue from special order Less variable expense associated with the order: Variable manufacturing costs Contribution margin LOSS: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Data Table Direct materials Direct labor Variable manufacturing overhead Variable marketing expenses Fixed manufacturing overhead Total cost. * $2,100,000 total fixed manufacturing overhead/131,250 pairs of sunglasses 84 Print Done
Please help with the first requirement which is preparing an incremental analysis as seen at the bottom of the first picture.
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