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San Jose Sunglasses sell for about $152 per pair. Suppose that the company incurs the following average costs per pair: 'Click the icon to view
San Jose Sunglasses sell for about $152 per pair. Suppose that the company incurs the following average costs per pair: 'Click the icon to view the cost information.) Read the requirements. Prepare the analysis to determine the effect on operating income. (Enter decreases to profits with a parentheses or minus sign.) Requirements 1. How would accepting 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 consider in deciding whether to accept the order? 2. San Jose's marketing manager, Peter Preston, argues against accepting the special order because the offer price of $69 is less than San Jose's $78 cost to make the sunglasses. Preston asks you, as one of San Jose's staff accountants, to explain whether his analysis is correct. What would you say
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