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1. need a walk through of the question 1. Identify each cost in the income statement as either relevant or irrelevant to Safe Sailing's decision.

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1. Identify each cost in the income statement as either relevant or irrelevant to Safe Sailing's decision. 2. Prepare a differential analysis to determine whether Safe Sailing should accept this special sales order. 3. Identify long-term factors Safe Sailing should consider in deciding whether to accept the special sales order. Data table \begin{tabular}{lr} Sales in Units & 40,000 \\ \hline Net Sales Revenue & $80,000 \\ \hline Variable Costs: & \\ \hline Manufacturing & 200,000 \\ \hline Selling and Administrative & 105,000 \\ \hline Total Variable Costs & 305,000 \\ \hline Contribution Margin & 375,000 \\ \hline Fixed Costs: & \\ \hline Manufacturing & 121,000 \\ \hline Selling and Administrative & 90,000 \\ \hline Total Fixed Costs & 211,000 \\ \hline Operating Income & 164,000 \\ \hline \end{tabular} Safe Sailing manufactures flotation wests in Charleston, South Carolina. Sale Sailing's Suppose Overlook wiches to buy 4,000 vests from Safe Sailing Safe Sailing wi contribution margin income statement for the month ended January 31, 2024, contains not incur any variabie selling and adrninistratwe expensos on thit special order the following data The Sale Salling plant has enough unused capacity to manufacture the additice (Cick the icon to view the cost inlormation) yosts. Overlook has offered 513 per vest, which is below the normal sales price 517 Read the cequirements Requirement 1. Identify each cost in the income statement as oither tolevant or irrolevant to Safo Saling is dectsion Requirement 3. Identify long-term factors Safe Sailing should consider in deciding whether to accept the special sales order. In addtion to delermining the special order's effect on operating profits, Safe. Saling's managers alro should consider the following A. Wit the special order customer come back again and again asking for the same reduced price? B. How will Sale Saling's compethors react? Will thoy retallate by cutling their prices and starting a price war? C. Wie Safe Sailing's other customers find out about the lower sale price Sato Saing accepted trom Overlook? If so, wilt these other customers demand lower sale prices? D. All of the above E. None of the above

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