Data table $ 39 Direct materials Direct labor 10 6 Variable manufacturing overhead Variable selling expenses 3 $25 Fixed manufacturing overhead $ 83 Total cost * $2,400,000 Total fixed manufacturing overhead / 96,000 Pairs of sunglasses Requirements 1. How would accepting the order affect Melrose's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Melrose's managers consider in deciding whether to accept the order? 2. Melrose's marketing manager, Peter White, argues against accepting the special order because the offer price of $80 is less than Melrose's $83 cost to make the sunglasses. White asks you, as one of Melrose's staff accountants, to explain whether his analysis is correct. What would you say? u Melrose Sunglasses sell for about 5158 per pair. Suppose that the compary incurs the following average costs per pair Click the icon to view the cost information) Melrose has enough idle capacity to accept a one-time-only special order from Nevada Shades for 25,000 pals of sunglasses at $80 per palt. Melrose will not neur any variable selling exponses for the order. Read the couirements Requirement 1. How would accepting the order affect Melrose's operating income? In addition to the special order's effect on profits, what other (longer-torm qualitative) factors should Melrose's managers consider in deciding whether to accept the order? Prepare the analysis to determine the effect on operating income (Entor decreases to profits with a parentheses or minus skon.) Expected increase in revenues Sunglasses Expected increase in expenses sunglasses Expected in operating income