Tint Sunglasses soll for about $190 per pair Suppose the company incurs the following average costs per pair (Click the icon to view the cost information.) Tint has enough idle capacity to accept a one-time only special order from Master Classes for 18,000 pairs of sunglasses at $72 per par Tint will not incur any variable marketing expenses for the order Requirements Requirement 1. How would accepting the order affect Tint's operating income? In addition to the specal order's effect on profits what other longer-term qualitative) factors should Tint's managers consider in deciding whether to accept the order? Prepare the analysis to determine the effect on operating income (Enter a zero, "O", in an input box if there is no expected change in the expense. Use parentheses or a minus sign for an expected decrease in operating income.) Tint Incremental Analysis of Special Sales Order Expected increase in revenues Expected increase in expenses Variable manufacturing cost Food manufacturing costs Total expected increase in expenses Expected increase (decrease) in operating income In addition to the special order's offect on profits, what other longer com qualitative) factors should it's managers considerin deciding whether to accept the order? In addition to determining the special order's effect on operating profits, Tit's managers are should consider the folowing (Select all that apply) Enter any number in the edit fields and then continue to the next question e n later Tint Sunglasses sell for about 5190 per pair Suppose the company incurs the following average costs per par (Click the icon to view the cost information.) Tint has enough to capacity to accept a one time-only special order from Master Classes for 18.000 pairs of sunglasses at 572 per par Tint will not incur any variable marketing expenses for the order Requirements In addition to determining the special order's effect on operating profits.link's managers also should consider the following select all that apply A. When should the equipment used to produce sunglasses be refurbished and at what cost? B. Wal lowering the sale price tarnish Tint's image as a high quality brand? C. Wil Tint's other customers find out about the lower sale price Tint offered to Master Classes? If so, wil these other customers domand lower sale prices? D. How will it's competitors react? Will they retaliate by cutting their prices and starting a price war? Requirement 2. Tint's marketing manager, Jim Revo, aques against accepting the special order because the other price of $72 less than Tints to conto make the sunglasses Revo asks you, as one of it's stall accountants to write a momo explaining whether he analysis is correct of 1 Date To Mr Jim Rovo, Marketing Manager From Stall Accountant Subject Master Classes special order 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 we fill the order are to our decision This is why comparing the $72 price Master Glasses offered us with our SBO total cost of making and selling the sunglasses is Specifically, we have enough capacity to produce the 20.000 extra par will whother or not we accept the on the special order. These costs Master Classes, so these costs are of sunglasses for Master Glasses' special order without increasing our so these costs are Also, as you know, we will not incur any hether or not we make the additional 20,000 pairs of sunglasses for Master Classes special order, we will incur extra cost The extra per pair of sunglasses. Therefore, we should to fill the special order the special order Enter any number in the edit fields and then continue to the next question. Save for Later equirements Data Table hat other (longer-term qualitative) quirement 1. How would accepting tors should Tina's managers conside epare the analysis to determine the e arentheses or a minus sign for an e Inge in the expense. Use Direct materials Direct labour Variable manufacturing overhead Variable marketing expenses Fixed manufacturing overhead Incremer Expected increase in revenues Expected increase in expenses Variable manufacturing cost Fixed manufacturing costs Total expected increase in expens Total cost *$2,100,000 total faed manufacturing overhead / 210.000 pairs of sunglasses Print Done Expected increase (decrease) in oper din in the special order's effect W on M O W i ng whether to accept the order