Question: Data table to the spe ? er a 0 fo Requirements 1. How would accepting the order affect Vera Juda's operating income? In addition to


Data table to the spe ? er a "0" fo Requirements 1. How would accepting the order affect Vera Juda's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Vera Juda's managers consider in deciding whether to accept the order? 2. Vera Juda's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $81 is less than Vera Juda's $90 cost to make the sunglasses. Revo asks you, as one of Vera Juda's staff accountants, to explain whether his analysis is correct. Vera Juda Sunglasses sell for about $125 per pair, Suppose the company incurs the following average costs per pair: (Click the icon to view the cost information.) Vera Juda has enough idle capacity to accept a one-time-only special order from Nevada Glasses for 20,000 pairs of sunglasses at $81 per pair. Vera Juda will not incur any variable marketing expenses for the order. Read the requirements. Requirement 1. How would accepting the order affect Vera Juda's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Vera Juda'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 " 0 for any zero balances, Use parentheses or a minus sign to indicate a decrease in operating income from the special order.)
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