Vera White Sunglasses sell for about $145 per pair. Suppose the company incurs IN TOWN Click the icon to view the cost information.) Vera White has enough idle capacity to accept a one-time-only special order from Washington Glasses for 23,000 pairs of sunglasses at 569 per pair Vera White will not incut any variable marketing expenses for the ordet Read the requirements est Requirement 1. How would accepting the order affect Vera White's operating income? In addition to the special order's effect on profits, what other longer-term qualitative) factors should Vera White's managers consider in deciding whether to accept the order? Prepare an incremental analysis to determine the special order's effect on operating income (Enter a "O" for any zero balances. Use parentheses or a minus sign to indicate a decrease in operating income from the special order.) Total Order Incremental Analysis of Special Sales Order Decision Per Unit 123.000 units) 69 Revenue from special order Less variable expense associated with the order i -X Data Table f Direct materials. ... $ 40 eff Direct labor.... 11 ai Variable manufacturing overhead.... 9 Variable marketing expenses...... 2 16* Fixed manufacturing overhead ..... $ 78 Total cost .... * $2,200,000 total fixed manufacturing overhead - 137,500 pairs of sunglasses Print Done a i Requirements lo er til 1. How would accepting the order affect Vera White's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Vera White's managers consider in deciding whether to accept the order? 2. Vera White's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $69 is less than Vera White's $78 cost to make the sunglasses, Revo asks you, as one of Vera White's staff accountants, to explain whether his analysis is correct. si er CI Print Done Total Order (23,000 units) Per Unit 69 Incremental Analysis of Special Sales Order Decision Revenue from special order Less variable expense associated with the order Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the order 60 Increase (decrease) in operating income from the special order