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Total Order Incremental Analysis of Special Sales Order Decision Per Unit (22,000 units) Revenue from special order Less variable expense associated with the order: Variable

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Total Order Incremental Analysis of Special Sales Order Decision Per Unit (22,000 units) Revenue from special order Less variable expense associated with the order: Variable manufacturing costs Contribution margin Less: Additional fixed expens Increase (decrease) in operating income from the special order es associated with the order Requirement 2. Hoover McKnight's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $73 is less than Hoover McKnight's $85 cost to make the sunglasses. Revo asks you, as one of Hoover McKnight's staff accountants, to explain whether his analysis is correct n9whether to acceptaspecial order, we should compare the extra revenues we will receive against the order are $85 total cost of making and selling the sunglasses is Costs that we will incur whether or not we fill the to our decision. This is why comparing the $73 price Water Glasses offered us with our Total Order Incremental Analysis of Special Sales Order Decision Per Unit (22,000 units) Revenue from special order Less variable expense associated with the order: Variable manufacturing costs Contribution margin Less: Additional fixed expens Increase (decrease) in operating income from the special order es associated with the order Requirement 2. Hoover McKnight's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $73 is less than Hoover McKnight's $85 cost to make the sunglasses. Revo asks you, as one of Hoover McKnight's staff accountants, to explain whether his analysis is correct n9whether to acceptaspecial order, we should compare the extra revenues we will receive against the order are $85 total cost of making and selling the sunglasses is Costs that we will incur whether or not we fill the to our decision. This is why comparing the $73 price Water Glasses offered us with our

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