Sylvan White Sunglasses sell for about $$145$ per pair. Suppose the company incurs the following average costs per pair.

$($Click the icon to view the cost information.$)$

Sylvan White has en ugh idle capacity to accept a one$-$time$-$only special order from Montana Glasses for $16,000$ pairs of sunglasses at $$78$ per pair. Sylvan White will not incur any variable marketing expenses for the order$-$

Read the requirements.

Requirement $1.$ How would accepting the order affect Sylvan White's operating income? In addition to the special order's effect on profits, what other $($Ionger$-$term 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 $"0"$ 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