i - X Data Table 11 N Direct materials 42 Direct labor 14 Variable manufacturing overhead.. Variable marketing expenses 25 Fixed manufacturing overhead 94 Total cost.... $2,000,000 total fixed manufacturing overhead / 80,000 pairs of sunglasses * Print Done Opal Preston Sunglasses sell for about $150 per pair. Suppose the company incurs the following average costs per pair: (Click the icon to view the cost information.) Opal Preston has enough idle capacity to accept a one-time-only special order from LA Glasses for 16,000 pairs of sunglasses at $79 per pair. Opal Preston will not incur any variable marketing expenses for the order. Read the requirements. Requirement 1. How would accepting the order affect Opal Preston's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Opal Preston'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.) Total Order Per Unit (16,000 units) 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 Increase (decrease) in operatina income from the special order IMUN Requirements X 1. How would accepting the order affect Opal Preston's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Opal Preston's managers consider in deciding whether to accept the order? 2. Opal Preston's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $79 is less than Opal Preston's $94 cost to make the sunglasses. Revo asks you, as one of Opal Preston's staff accountants, to explain whether his analysis is correct. Print Done