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Sylvan White Sunglasses sell for about $ 1 4 5 per pair. Suppose the company incurs the following average costs per pair. ( Click the
Sylvan White Sunglasses sell for about $ per pair. Suppose the company incurs the following average costs per pair.
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Sylvan White has en ugh idle capacity to accept a onetimeonly special order from Montana Glasses for pairs of sunglasses at $ per pair. Sylvan White will not incur any variable marketing expenses for the order
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Requirement How would accepting the order affect Sylvan White's operating income? In addition to the special order's effect on profits, what other Iongerterm qualitative factors should Sylvan White'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 for any ze income from the special order.
Incremental Analysis of Special Sales Order Decision
Revenue from special order
Less variable expense associated with the order:
Variable manufacturing costs
Contribution margin
Less: Additional fixed expenses associated with the order
Increase decrease in operating income from the special order
Data table
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