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pm Question Help 0 if 3 /20 pm /20 pm Hampshire Sunglasses sell for about $151 per pair. Suppose that the company incurs the following average costs per pair (Click the icon to view the cost information) Hampshire has enough idle capacity to accept a one time only special order from Colorado Shades for 19,000 pairs of sunglasses at $73 per pair. Hampshire will not incur any variable selling expenses for the order Read the regulaments Requirements order's effect er to accept the - DO 20 pm /20 pm or minus sign) 1. How would accepting the order affect Hampshire's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Hampshire's managers consider in deciding whether to accept the order? 2. Hampshire's marketing manager, Peter Smith, argues against accepting the special order because the offer price of $73 is less than Hampshire's 582 cost to make the sunglasses. Smith asks you, as one of Hampshire's staff accountants to explain whether his analysis is correct What would you say? 20 pm of 3 /20 pm managers Print Done /20 pm /20 -X i Data Table Click the shireh 3 per pa the red Direct materials $ 37 S uiremen ofits, wh Direct labor 10 Variable manufacturing berhead 8 are the Variable selling expenses N 25 Fixed manufacturing overhead Dected il GA 82 Total cost Dected in * $2,000,000 Total fixed manufacturing overhead/80,000 Pairs of sunglasses Dected ag dition to der in de Print Done Requirement 1. How would accepting the order affect Hampshire's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Hampshire's managers consider in deciding whether to accept the order? Prepare the analysis to determine the effect on operating income (Enter decreases to profits with a parentheses or minus sign.) Expected increase in revenues sunglasses Expected increase in expenses sunglasses Expected in operating income In addition to ar's effect on profits, what other (longer-term qualitative) factors should Hampshire's managers consider in de decrease to accept the order? increase Choose from any ust or enter any number in the input fields and then continue to the next question. 2 In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Hampshire's managers consider in deciding whether to accept the order? O A. Will Hampshire's other customers find out about the lower sale price Hampshire offered to Colorado Shades? If so, will these other customers demand lower sale prices? OB. Will lowering the sale price tarnish Hampshire's image as a high quality brand? OC. How will Hampshire's competitors react? Will they retaliate by cutting their prices and starting a price war? OD. All of the above O E. None of the above Requirement 2. Hampshire's marketing manager Peter Smith argues against accepting the special order because the offer price of $73 is less than Hampshire's $82 cost to make the sunglasses Smith asks you as one of Hampshire's staff tantri nuninin what he hit newhat Choose from any list or enter any number in the input fields and then continue to the next question Requirement 2. Hampshire's marketing manager, Peter Smith, argues against accepting the special order because the offer price of $73 is less than Hampshire's $82 cost to make the sunglasses Smith asks you, as one of Hampshire's staff accountants, to explain whether his analysis is correct. What would you say? When deciding whether to accept a special order, we should compare the Costs that we will incur whether or not we fill the order are to our decision This is why comparing the 573 price Colorado Shades offered us with our 582 total cost of making the sunglasses is The additional revenues and the additional costs that we will incur to fill the special order f we accept the Colorado Shades special order, we will incur only $ of additional cost per pair, which is than the $73 per pair that Colorado Shades offered. Therefore we should the special order to the company's operating income are Choose from any list or enter any number in the input fields and then continue to the next question Read the requirements. Requirement 2. Hampshire's marketing manager, Peter Smith, argues against accepting the special order beca price of $73 is less than Hampshire's $82 cost to make the sunglasses. Smith asks you, as one of Hampshire's a accountants, to explain whether his analysis is correct. What would you say? When deciding whether to accept a special order, we should compare the Costs that we will incur w ades offered us wit revenues we will receive against the differential costs prior to filling the order. revenues we will receive against the differential costs we will incur to fill the order revenues prior to filling the order against the extra costs we will incur to fill the order If we ac the Colorado Shades special order, we will incur only $ of additional cost per pair, which is per pair that Colorado Shades offered. Therefore, we should the special order to the com operating income Choose from any list or enter any number in the input fields and then continue to the next question (Click the icon to view the cost information.) Hampshire has enough idle capacity to accept a one-time-only special order from at $73 per pair. Hampshire will not incur any variable selling expenses for the ord Read the requirements. Requirement 2. Hampshire's marketing manager, Peter Smith, argues against a price of $73 is less than Hampshire's $82 cost to make the sunglasses. Smith asl accountants, to explain whether his analysis is correct. What would you say? When deciding whether to accept a special order, we should compare the fill the order are to our decision. This is why comparing the $73 price cost of making the irrelevant The additional re ditional costs that we will incur to fill the specia are relevant the Colorado Shades special order, we will incur only $ of additional per pair that Colorado Shades offered. Therefore, we should the special o operating income Choose from any list or enter any number in the input fields and then continue Hampshire Sung (Click the icon to view the cost information.) Hampshire has enough idle capacity to accept a one-time-only special order from Colorado at $73 per pair. Hampshire will not incur any variable selling expenses for the order. Read the requirements. Requirement 2. Hampshire's marketing manager, Peter Smith, argues against accepting th price of $73 is less than Hampshire's $82 cost to make the sunglasses. Smith asks you, as accountants, to explain whether his analysis is correct. What would you say? When deciding whether to accept a special order, we should compare the Cosi fill the order are to our decision. This is why comparing the $73 price Colorado cost of making the sunglasses is are The additional revenues and the at we will incur to fill the special order correct the Colorado Shades special orde incorrect ly $ of additional cost per p per pair that Colorado Shades offereu eleivie, we should the special order to operating income Choose from any list or enter any number in the input fields and then continue to the ne