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Question 11 Clear Vision Sunglasses sell for $150 per pair. The company has the following average costs per pair of sunglasses: Variable Costs: Direct
Question 11 Clear Vision Sunglasses sell for $150 per pair. The company has the following average costs per pair of sunglasses: Variable Costs: Direct Materials Direct Labor Variable overhead Fixed overhead $49.00 $16.00 $9.00 $33.00 Variable Selling Expense $3.00 Total Costs $110.00 Clear Vision Sunglasses has been asked by Alaskan Shades to produce a one-time special order for 21,000 sunglasses at $80.00 per pair. Clear Vision Sunglasses has the capacity to fill this order and will not incur any variable selling expenses for this order. How would accepting this order impact Clear Vision Sunglasses operating income? Operating income would increase. Clear Vision Sunglasses Expected change in revenue 1680000 Expected change in variable manufacturing costs 1617000 X Expected change in operating income
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