ut $152 per pair. Suppose that the company incurs the following average costs per pair: ormation.) sy to accept a one-time-only special order from Water Shades for 22,000 pairs of sunglasses at -r the order. - X Data Table pro ng Direct materials $ 36 Direct labor 9 6 ng Variable manufacturing overhead Variable selling expenses Fixed manufacturing overhead 3 25 ffed Lider in Total cost 79 com * $1,950,000 Total fixed manufacturing overhead / 78,000 Pairs of sunglasses ce ta r cus Print Done ese othe any number in the input fields and then continue to the next question. Ashley Speer Sunglasses sell for about $152 per pair. Suppose that the company Incurs the following average costs per pair Click the icon to view the cost information) Ashley Speer has enough idle capacity to accept a one-time-only special order from Water Shades for 22.000 pairs of sunglasses at $70 per pair. Ashley Speer will not incur any variable selling expenses for the order. Read the requirements Requirement 1. How would accepting the order affect Ashley Speer's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Ashley Speer's managers consider in deciding whether to accept the order? Prepare the analysis to determine the effect on operating incomo. (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 the special order's effect on profits, what other (longer-term qualitative) factors should Ashley Speer's managers consider in deciding whether to accept O A. How will Ashley Speer's competitors react? Will they retaliate by cutting their prices and starting a price war? B. Will lowering the sale price tarnish Ashley Spear's image as a high-quality brand? OC. Wil Ashley Speer's other customers find out about the lower sale price Ashley Speer offered to Water Shades? If so, will these other customers demand lower sale prices? OD. All of the above O E. None of the above Upi Uue ting O > Ashley Speer Sunglasses sell for about $152 per pair. Suppose that the company incurs the following average costs per pair Click the icon to view the cost information.) Ashley Speer has enough idle capacity to accept a one-time-only special order from Water Shades for 22,000 pairs of sunglasses at $70 per pair. Ashley Speer will not incur any variable selling expenses for the order, Read the requirements OB. Wil lowering the sale price tarnish Ashley Spear's image as a high-quality brand? OC. Will Ashley Spoer's other customers find out about the lower sale price Ashlay Speer offered to Water Shades? If so, will those other customers demand lower OD. All of the above O E. None of the above Requirement 2. Ashley Spear's marketing manager, Peter Juda, argues against accepting the special order because the offer price of $70 is less than Ashley Spear's $79 cost to make the sunglasses. Juda asks you, as one of Ashley Speer'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 V to our dec making the sunglasses is revenues we will receive against the differential costs prior to filing 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 inour to fill the revenues prior to filling the order against the extra costs we will incur to fill the order the Water Shades special order, we will incur only $ of per pair that Water Shades offered. Therefore, we should the special order to the company's operating income 3 es Choose from any list or enter any number in the input fields and then continue to the next question. sell for about $152 per pair. Suppose that the company incurs the following average costs per pair: w the cost information.) idle capacity to accept a one-time-only special order from Water Shades for 22,000 pairs of sunglasses at $70 per expenses for the order. sal - er's Requirements ove y Spa sungla s le ht w 1. How would accepting the order affect Ashley Speer's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Ashley Speer's managers consider in deciding whether to accept the order? 2. Ashley Speer's marketing manager, Peter Juda, argues against accepting the special order because the offer price of $70 is less than Ashley Speer's $79 cost to make the sunglasses. Juda asks you, as one of Ashley Speer's staff accountants, to explain whether his analysis is correct. What would you say? er to a ther on US W es is Print Done nues an special order, we will incur only $ Shades offered. Therefore, we should of additional cost per pair which is the special order to than the $70 the company's list or enter any number in the input fields and then continue to the next Ashley Spear Surge el for whout 5152 per pair. Suppose that the company incurs the following average costs per pair Click the icon to view the cost information) Ashley Speer has enough ide capacity to accept a one-time-only special order from Water Shades for 22.000 pain of sunglasses at per par. Ashley Spear will not now any variable singerpenses for the order Read the team Hequirement. How would accepting there are many per operating income in nation to me special orders meet on protes, what other jorgerom qualitative actors should Ashley Spears managers come in ding water to accept the order? Prepare the analysis to determine the effect on pating income (Enter decreases to profits with a parentheses or mini Expected crease in events Expected increase in penses sungasses Expected Jin operating income adotion to the special order's effect on prots, what the longer term factors should alloy Spear's managers consider in deciding whether to accept the order? O A How with Sover's comperors real? We they were by cutting their prices and staring a price and OB. We lowering the sale price tarih Ashley Spear's images ar? OC wa Ashley Spear's other customers find out about the lower le price Astey Spear offered to Water Shades? wil there the customers demand lower sale price? OD. A of the above OE None of the bove Requirement 2. Ashley Spoor's mang manager, Peter dan pength of the other price of 570 has Ashley Spear's 579 cost to make the sunglasses Judaks you, as one of Ashley Spo's accountants, to explain whether his analysis is correct. What would you say? When deciding whether to a special order, we should compare Costs that we will incur whether or not wel header decision. This is why comparing the price Water Shades offered us with our 579 cost of making the anses is The controvers and the son costs that we will incur te stel orders De Water Shades corde, we will incur only of additional cost per pair, which is Dante 30 the series Choose from west or any number in minutes and then continue to the next gestion