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Stella McKnight Sunglasses sell for about $151 per pair. Suppose the company incurs the following average costs per pair: (Click the icon to view the

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Stella McKnight Sunglasses sell for about $151 per pair. Suppose the company incurs the following average costs per pair: (Click the icon to view the cost information.) Stella McKnight has enough idle capacity to accept a one-time-only special order from Alaska Glasses for 22,000 pairs of sunglasses at \$74 per pair. Stella Mcknight will not incur any variable marketing expenses for the order. Read the requirements. Requirement 1. How would accepting the order affect Stella McKnight's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Stella McKnight's managers consider in deciding whether to accept the order? Prepare an incremental analysis to determine the special order's effect on operating income. (Enter a "0* for any zer balances. Use parentheses or a minus sign to indicate a decrease in operating income from the special order.) Requirements 1. How would accepting the order affect Stella McKnight's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Stella McKnight's managers consider in deciding whether to accept the order? 2. Stella Mcknight's marketing manager. Jim Revo, argues against accepting the special order becouse the offer price of $74 is less than Stella MeKnight's $86 cost to make the sunglasses. Revo asks you, as one of Stelia McKnight's staff accountants, to explain whether his analysis is correct. Data table

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