San Jose Sunglasses sel for about $155 per par Suppo that the company inours the following average costs per pair TE (Click the icon to view the cost informabon.) San Jose has enough ide capacity to accept a one-t-only special order from Colorado Shades for 24,000 pairs of sunglasses at 873 per pait San Jose will not incur any variable selling expenses for the order Read the requirements 24.000 24,000 suges Requirement 1. How would accepting the order atlet San Jose's operating income? In addition to the special order's effect on profits, what other longer-term curative) factors should San Jose's managers consider in deciding whether to accept the order? Prepare the analysis to determine the effect on operating income. (Emer de to profit with a parentheses or minus sign) Requirements Expected increase in revenue sunglass $ 79 51.752.000 Expected increase in expenses 3 560.40.000 Expected increase $ 400.000 in operating income 1. How would acceptng the order affect San Jose's operating income? In addition to the special order's effect on profits, what other longer term qualitative factors should San Jose's managers In addition to the special order's effect on profits, what other longer-term qualitative) factors should San Jose's managers consider in deciding whether to accept the order? consider in deciding whether to accept the order? 2. San's marketing manager, Pater Cole, argues against coeping the special order A How wil San Jose's competitors react? Will they reallate by cutting their prices and starting a price war? the other price of $73 is less than San Jose's $83 cost to make the sunglasses Cole asks you, as 1. We San Jose's other customers find out about the lower sale price San Jose offered to Colorado Shades? If so, will these other customers demand lower sale prices? one of San Jose's staff accountants to explain whether his analysis is correct. What would you say? DC Willowing the sale price tamish Sand image as a high-quality brand? WO. All of the above Print Dong DE None of the above Requirement 2. San Jose's marketing manager, Peter Cole, agues against accepting the special order because the offer price of $73 is hiss than San Jose's $83 cost to make the sunglasses Cole ask you as one of San Jose's staff accountants to explain whether his analysis is correct. What would you say? Costs that we will incur whether or not well the order are irrelevant to our decision. This is why comparing the $73 price Colorado Shades When deciding whether to accept a special order, we should compare the news we will receive against a differential costs we will incur to fill the orden offered us with our $83 total cost of making the sunglasses is incorrect w Data Table The additional revenues and the additional costs that we will incur to the special orderare the Colorado Shadies special order, we will incur only $ of addicional coal por pat, which per pair that Colorado Shades offered. Therefore, we should the speciw order to operating income than the 573 the company's 35 12 Direct materials Direct labor Variable manufacturing overhead Variable saling expenses Fixed manufacturing overhead 6 2 25. Total cost Choose from any liat or enter a number in the input fisiols and then click Check Answer - $2,250,000 Total fixed manufacturing overhoad/00.000 Pairs of sunglasses