Stella Stenback Sunglasses sell for about 5135 per pair Suppose the company incurs the following average costs per pair Click the icon to view the cost information) Stella Stenback has enough ide capacity to accept a one-time-only special order from Water Glasses for 20,000 pairs of sunglasses at $65 per pair Stela Stenback will not incur any variable marketing expenses for the order Read the requirements Requirement 1. How would accepting the order offect Stella Stenback's operating income in addition to the special order's effect on profits, what other (longer-term qualitative) factors should Stella Stenback's managers consider in deciding whether to accept the order? Prepare an incremental analysis to determine the special order's efect on operating income (Enter a "for any zero balances Une parentheses or a minut sign to indicate decrease in operating income from the special order) Total Order Incremental Analysis of Special Sales Order Decision Per Unit (20,000 units Revenue from special order Les viable expense tocated with the order Variable manufacturing costs Contbution margin Less: Additional fixed expenses associated with the order Increase (decrease in operating income from the special order Enter any number in the edit fields and then continue to the next question Stella Stenback Sunglasses sell for about 5135 per pair Suppose the company Incurs the following average costs per pair (Click the icon to view the cost information Stella Stenback has enough idle capacity to accept a one-time-only special order from Water Glasses for 20.000 pairs of sunglasses at $65 per pair Stela Stenback will not incur any variable marketing expenses for the order Read the requitements In addition to determining the special order's effect on operating profits, Stenbacks managers also should consider the following O A Will lowering the sale price tarnish Stella Stenback's image as a high-quality brand? OB. How will Stella Stenback's competitors read? Will they retaliate by cutting their prices and starting a price war? OC Win Stella Stenbacks other customers find out about the lower sale price Steia Stenback offered to Water Glasses? If so, will these other customers demand lower sale prices OD. All of the above CE None of the above Requirement 2. Stella Stenbacis marketing manager Jim Revo, arges against accepting the special order because the offer price of 565 is less than Stella Stenback's 580 cost to make the sunglasses Revo asks you, as one of Stella Stenbad's staff accountants to explain whether hit analysis is correct When deciding whether to accept a special order, we should compare the extra revenues we will receive against the Costs that we will incur whether or not weathe order are V to our decision This is why comparing the $65 Water Glasses offered us with our SBO fotal cost of making and selling the sunglasses Entrany number in the folds and then continue to the next question X Data Table oper pack . Will tabo , will 2. * ..*... Direct materials..... $ 38 Direct labor 14 Variable manufacturing overhead. 6 Variable marketing expenses 2 20* Fixed manufacturing overhead 80 Total cost * $2,000,000 total fixed manufacturing overhead = 100,000 pairs of sunglasses ... GA .. brice o er, Jim la Ster e shoul Print Done us wit to our - * Requirements 1. How would accepting the order affect Stella Stenback's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Stella Stenback's managers consider in deciding whether to accept the order? 2. Stella Stenback's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $65 is less than Stella Stenback's $80 cost to make the sunglasses. Revo asks you, as one of Stella Stenback's staff accountants, to explain whether his analysis is correct