Question: Requirements 1. How would accepting the order affect Vera Root's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative)

 Requirements 1. How would accepting the order affect Vera Root's operating
income? In addition to the special order's effect on profits, what other
(longer-term qualitative) factors should Vera Root's managers consider in deciding whether to
accept the order? 2. Vera Root's marketing manager, Jim Revo, argues against

Requirements 1. How would accepting the order affect Vera Root's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Vera Root's managers consider in deciding whether to accept the order? 2. Vera Root's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $75 is less than Vera Root's $83 cost to make the sunglasses. Revo asks you, as one of Vera Root's staff accountants, to explain whether his analysis is correct. Vera Root Sunglasses sell for about \$151 per pair. Suppose the company incurs the following average costs per pair: EAf (Click the icon to view the cost information.) Vera Root has enough idle capacily to accept a one-time-only spocial ordor from Montana Glasses for 22,000 pairs of sunglasses at $75 per par. Vera Root will not incur any variable marketing expenses for the order. Read the Data table Requirement 1. How would accepting the order affect Vera Root's operating income? In addition to the special order's effect on profits, what other (longar-term qualitative) factors should Vera Root's managers consider in deciding whother 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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