Presco makes handheld calculators in two modes-basic and professional and wants to refiniscing em by locating ved using apartmental rates. The estimated $851.500 al manufacturing overtas has been duided into the poolsently Department and Packaging Department. The following dat have been compiled Compute the pedetermined vertad allocation rates using machine hours at the location base for the Assembly Department and direct sbor hours for the Packaging Department Bagn by sducing the tomato calculate the predetermined owned (OH allocation rate. Then the amounts to come the daton ne for each partner Abtrevuton tietynly Enter the location takes the new Predetermined Data Table location are Assembly Deportinent 550,000 Packaging Department 01.01 Total 351.500 Owhat costs 1 BMW Pronou Pagine How much is acted to the model to the professionnel Bagn Wyshe me acone whow to cool Aloe vera Computerwowhead foted to ne boste moral, and the computer aloverfield led to the profesional mod Basic Model holl Model Mughal Marting weat-Packaging al manufacturing who con 135.500 MH 64.500 MH 500.000 MH 44.800 MH 110.00 MH 156.000 MW 110,000 475,000 MW 56.000 M Director De Model Pro Mode Toal 10.000 DLR 200.00 34.500 DL 05.000 07 SOODCH 500.000 27000D 610.000 77000D Choose from any list or enter any number in the routfields and then continue to the next question Done Parkland Sunglasses sell for about $155 per pair. Suppose that the company incurs the following average costs per pair (Click the icon to view the cost information.) Parkland has enough idle capacity to accept a one-time-only special order from Water Shades for 22,000 pairs of sunglasses at $79 per pair. Parkland will not incur any variable selling expenses for the order. Read the requirements Requirement 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? Prepare the analysis to determine the effect on operating income. (Enter decreases to profits with a parentheses or minus sign) Expected increase in revenues sunglasses Expected increase in expenses | sunglasses Expected in 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? O A Will lowering the sale price tarnish Parkland's image as a high-quality brand? OB. How will Parkland's competitors react? Will they retaliate by cutting their prices and starting a price war? OC. Will Parkland's other customers find out about the lower sale price Parkland offered to Water Shades? If so, will these other customers demand lower sale prices? OD. All of the above O E. None of the above Requirement 2. Parkland's marketing manager, Peter Preston, argues against accepting the special order because the offer price of $79 is less than Parkland's $87 cost to make the sunglasses. Preston asks you, as one of Parkland's staff accountants, to explain whether his analysis is correct. What would you say? When deciding whether to accept a special order, we should compare the Costs that we will incur whether or not we fill the order are to our decision. This is why comparing the $79 price Water Shades offered us with our $87 total cost of making the sunglasses is The additional revenues and the additional costs that we will incur to fill the special order are the Water Shades special order, we will incur only of additional cost per pale, which is per pair that Water Shades offered. Therefore, we should the special order to operating income we accept than the 579 the company's X 1 Data Table $ 44 8 Direct materials Direct labor Variable manufacturing overhead Variable selling expenses Fixed manufacturing overhead 7 3 $25* $ 87 Total cost * $2,350,000 Total fixed manufacturing overhead / 94,000 Pairs of sunglasses Print Done Presco makes handheld calculators in two modes-basic and professional and wants to refiniscing em by locating ved using apartmental rates. The estimated $851.500 al manufacturing overtas has been duided into the poolsently Department and Packaging Department. The following dat have been compiled Compute the pedetermined vertad allocation rates using machine hours at the location base for the Assembly Department and direct sbor hours for the Packaging Department Bagn by sducing the tomato calculate the predetermined owned (OH allocation rate. Then the amounts to come the daton ne for each partner Abtrevuton tietynly Enter the location takes the new Predetermined Data Table location are Assembly Deportinent 550,000 Packaging Department 01.01 Total 351.500 Owhat costs 1 BMW Pronou Pagine How much is acted to the model to the professionnel Bagn Wyshe me acone whow to cool Aloe vera Computerwowhead foted to ne boste moral, and the computer aloverfield led to the profesional mod Basic Model holl Model Mughal Marting weat-Packaging al manufacturing who con 135.500 MH 64.500 MH 500.000 MH 44.800 MH 110.00 MH 156.000 MW 110,000 475,000 MW 56.000 M Director De Model Pro Mode Toal 10.000 DLR 200.00 34.500 DL 05.000 07 SOODCH 500.000 27000D 610.000 77000D Choose from any list or enter any number in the routfields and then continue to the next question Done Parkland Sunglasses sell for about $155 per pair. Suppose that the company incurs the following average costs per pair (Click the icon to view the cost information.) Parkland has enough idle capacity to accept a one-time-only special order from Water Shades for 22,000 pairs of sunglasses at $79 per pair. Parkland will not incur any variable selling expenses for the order. Read the requirements Requirement 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? Prepare the analysis to determine the effect on operating income. (Enter decreases to profits with a parentheses or minus sign) Expected increase in revenues sunglasses Expected increase in expenses | sunglasses Expected in 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? O A Will lowering the sale price tarnish Parkland's image as a high-quality brand? OB. How will Parkland's competitors react? Will they retaliate by cutting their prices and starting a price war? OC. Will Parkland's other customers find out about the lower sale price Parkland offered to Water Shades? If so, will these other customers demand lower sale prices? OD. All of the above O E. None of the above Requirement 2. Parkland's marketing manager, Peter Preston, argues against accepting the special order because the offer price of $79 is less than Parkland's $87 cost to make the sunglasses. Preston asks you, as one of Parkland's staff accountants, to explain whether his analysis is correct. What would you say? When deciding whether to accept a special order, we should compare the Costs that we will incur whether or not we fill the order are to our decision. This is why comparing the $79 price Water Shades offered us with our $87 total cost of making the sunglasses is The additional revenues and the additional costs that we will incur to fill the special order are the Water Shades special order, we will incur only of additional cost per pale, which is per pair that Water Shades offered. Therefore, we should the special order to operating income we accept than the 579 the company's X 1 Data Table $ 44 8 Direct materials Direct labor Variable manufacturing overhead Variable selling expenses Fixed manufacturing overhead 7 3 $25* $ 87 Total cost * $2,350,000 Total fixed manufacturing overhead / 94,000 Pairs of sunglasses Print Done