Save Melrose Sunglasses sell for about 5156 per pair Suppose that the company incurs the following average costs per pair I! Click the icon to view the cost information) Melrose has enough idle capacity to accept a one-time-only special order from Alaska Shades for 22.000 pairs of sunglasses at 577 per pair. Melrose will not incur any variable selling expenses for the order Read the requirements CE 14 Dimilar to v 19 startol (06 Requirement 1. How would accepting the order affect Melrose's operating incomo? In addition to the special order's effect on profits what other longer torm qualitative) factors should Melrose's managers consider in deciding whether to accept the order? Prepare the analysis to determine the effect on operating income (Enter decreases to proter with a parentheses or minun sign) Expected increase in revenues sunglasses Expected increase in expenses sunglasses Expected In operating Income What other (longer-term Direct materials $ 40 Direct labor 8 7 Variable manufacturing overhead Variable selling expenses Fixed manufacturing overhead 3 $250 $ 83 Total cost $2.200.000 Total fixed manufacturing overhead I 88.000 Pairs of sunglasses Print Done Requirements (longer-term 1. How would accepting the order affect Melrose's operating income? In addition to the special order's effect on profits what other (longer-term qualitative) factors should Melrose's managers consider in deciding whether to accept the order? 2. Melrose's marketing manager, Peter Juda, argues against accepting the special order because the offer price of $77 is less than Melrose's $83 cost to make the sunglasses. Juda asks you, as one of Melrose's staff accountants, to explain whether his analysis is correct. What would you say? Print Done