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Are Burgos e for about 14 pe par Suppose the company noun the towing average couts per par Contover the continformation) Arth House has hecy to scept a one-neonly promoting for $6.000 per of sung s80 per partur Rose who nowy temat per here Read the realment Preow an increments to determine the perder te ondering income (Enter for any responserto del cong Income from the one Total Order Incremental Analysis of Special Sales Order Decision Per Unit 116.000 Revenge om polar Levered with the order bio manufacturing costs Cortina Lee Addisional depend with the order Increase in pronto the order In addition to determining the interest on pering prott. Mouse's managers should consider the following O A. How wilArthur House's competitions at they made by cutting the prior and starting a price war? On A Rowloter customers fod out about the lower tale pre Artur Routered to Roting Games?ite, will the other customers demand former le price? OC Wil lowering the retarih Arthur Reinage as a high quality brand? OD. All of the above OL. Nar of the ove Requirement 2. Arthur Route's marating managemeve, arms apting the special order because the other price of $80 than Arthur Roues con to make the sunglasses Heveske you, as one of Arthur House staff courants to explain whether he analysis score When deciding what to a special order, we would compare the extra reverse we will receive against the Costs that we will or whether or not weder au tou decision. This is why comparing the price Rolling Glass offered us with our 500 e cost of making and selling the sur le Enterary number in the edit fields and then continue to the next i Data Table es for from Direct materials $ 38 Direct labor 14 9 Variable manufacturing overhead Variable marketing expenses Fixed manufacturing overhead 4 25 $ Total cost 90 * $2,000,000 total fixed manufacturing overhead / 80,000 pairs of sunglasses Print Done Arthur Rouse Sunglasses sell for about $154 per pair. Suppose the company incurs the following average costs per pair: (Click the icon to view the cost information.) Arthur Rouse has enough idle capacity to accept a one-time-only special order from Rolling Glasses for 16,000 pairs of sunglasses at me $80 per pair. Arthur Rouse will not incur any variable marketing expenses for the order. Read the requirements ma Per Unit Requirement 1. How would accepting the order affect Arthur Rouse's operating incomo? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Arthur Rouse'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 d se parentheses or a minis sign to indicate a decrease in operating income from the special order.) Total Order Incremental Analysis of Special Sales Order Decision (16,000 units) Revenue from special order Less variable expense associated with the order. 7. Variable manufacturing costs n't sy actor Contribution margin rate Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order In addition to determining the special order's effect on operating profits, Rouse's managers also should consider the following wer O A. How will Arthur Rouse's compotitors react? Will they retaliate by cutting their prices and starting a price war? ricing B. Wil Arthur Rouse's other customers find out about the lower sale price Arthur Rouse offered to Rolling Glasses? If so, will these Enter any number in the edit fields and then continue to the next question, 2 Arthur Rouse Sunglasses sell for about $154 per pair. Suppose the company incurs the following average costs per pair. Click the icon to view the cost information.) Arthur Rouse has enough idle capacity to accept a one-time-only special order from Rolling Glasses for 16,000 pairs of sunglasses at $80 per pair. Arthur Rouse will not incur any variable marketing expenses for the order. Read the requirements al Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order In addition to determining the special order's effect on operating profits, Rouse's managers also should consider the following: O A How will Arthur Rouse's competitors react? Will they retaliate by cutting their prices and starting a price war? B. Wil Arthur Rouse's other customers find out about the lower sale price Arthur Rouse offered to Rolling Glasses? If so, will these other customers demand lower sale prices? O C. Will lowering the sale price tarnish Arthur Rouse's image as a high-quality brand? D. All of the above E. None of the above Requirement 2. Arthur Rouse's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $80 is less than Arthur Rouse's $90 cost to make the sunglasses. Revo asks you, as one of Arthur Rouse's staff accountants, to explain whether his analysis is correct When deciding whether to accept a special order, we should compare the extra revenues we will receive against the Costs that we will incur whether or not we fill the order are to our decision ver This is why comparing the $80 price Rolling Glasses offered us with our $90 total cost of making and selling the sunglasses is eing Enter any number in the edit fields and then continue to the next question SW tor rath 2 ed i Data Table mir Direct materials 38 hu Ror Direct labor 14 me 9 Variable manufacturing overhead Variable marketing expenses Fixed manufacturing overhead gt pov 4 25 all Total cost $ 90 $2,000,000 total fixed manufacturing overhead / 80,000 pairs of sunglasses rthy thu is is th Cou Print Done eth Costs that we will incur whether or not well the order are

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