Tolman Sunglasses sell for about $157 per pair Suppose that the company incurs the following average costs per pair (Click the icon to view the cost information.) Tolman has enough idle capacity to accept a one-time-only special order from Montana Shades for 24.000 pairs of sunglasses at $85 per pair. Tolman will not incur any variable selling expenses for the order Read the requirements Data Table X on to the special order's effect on profits, what other (longer term - dar? its with a parentheses or minusson Direct materials $ 36 Direct labor 15 Variable manufacturing overhead 8 Variable selling expenses 25 Fixed manufacturing overhead S 87 Total cost * $2.200,000 Total food manufacturing overhead/88,000 Pairs of sunglasses s should Town's managers considerin dooding whether to accept the tarting a price wa Montana Shades? If so, will these other customers demand lower sale Print Done Requirement 1. How would accepting the order affect Tolman's operating income? In addition to the special order's effect on profits, what other longer-torm qualitative) factors should Tolman'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 x Expected increase in expenses sunglasses Expected in operating income In addition to the special order's effect on profits what other longer term qualtative) factors should Tolman's managers consider in deciding whether to accept the order? O A. How will Tolman's competitors react? Will they retaliate by cutting their prices and starting a price war? OB. Will lowering the sale price tarnish Tolman's image as a high-quality brand? OC. Will Tolman's other customers find out about the lower sale price Tolman offered to Montana Shades? If so, will these other customers demand lower Sale prices? OD. All of the above OE None of the above Requirement 2. Tolman's marketing manager, Peter Kyler argues against accepting the special order because the offer price of $85 is less than Tolman's S87 cost to make the sunglasses Kylor asks you, as one of Tolman's staff accountants, to explain whether his ralysis 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 585 price Montana Shades offered us with our $87 total cost of making the sunglasses The additional revenues and the additional costs that we will incur to fill the special order are If we accept the Montana Shados special order, we will incur only S of adotional cost per part which than the $85 per pair that Montana Shades offered Therefore, we should the special order to the company's operating income Tof Requirement 2. Tolman's marketing manager, Peter Kyler, argues against accepting the special order because the offer price of 585 is less than Tolman's $87 cost to make the sunglasses. Kyler asks you, as one of Tolman's staff accountants to explain whether his analysis is correct. What would you say? When deciding whothor to accept a special order, we should compare the Costs that we will incur whether or not we fill the order are y tod total cost of making the sunglasses is 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 The additional revenues and the additional costs that we will incur lofil the revons prior long the order against the extra costs we will incur to fill the order the Montana Shades special order, we will incur only $ ner air that Montana Shades offered Therefore, we should the special order to the company's Requirement 2. Tolman's marketing manager, Peter Kyler, argues against accepting the special order because the offer pri to make the sunglasses. Kyler asks you, as one of Tolman's staff accountants, to explain whether his analysis is correct. Wh 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 $85 price total cost of making the sunglasses is irrelevant The additional revenues and the additional costs that we w ecial order are If we accept the Montana Shades special order, we will incur only s ditional cost per pair, which is than ti relevant Requirement 2. Tolman's marketing manager, Peter Kyler, argues against accepting the special order because the offer price of to make the sunglasses. Kyler asks you, as one of Tolman's staff accountants to explain whether his analysis is correct. What w 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 $85 price Mont total cost of making the sunglasses is If we accept correct The additional revenues and the addit the Montana Shades special order, we per pair that Montana Shades offered. will incur to fill the special order are of additional cost per pair, which is Juld the special order to than the incorrect the company's noratinirmo