25-34B LMS, Inc. manufactures stadium seat cushions. LMS's contribution margin income statement for the most recent month contains the fol- lowing data Sales in units Sales revenue Variable expenses: 31,000 $434,000 I 93,000 107,000 200.000 Manufacturing Marketing and administrative Total variable expensei Contribution margin 234,000E Fixed expenses Manufacruring Marketing and administrative Total fixed expenses 126,000 90,000 216,000 S 18.000 Operating income Underwood Company has offered $9 per unit for S,000 stadium seat cushions, which is below the normal sale price of $14. Acceptance of the order will not increase any of LMS's marketing and administrative expenses. The LMS plant has enough unused capaciry to manufacture the additional cushions. Requirements 1. Prepare an incremental analysis to determine the change in operating income if LMS accepts the special sales order. Should LMS accept the order? (pp. 1253-1254) 2. Identify long-term factors LMS should consider in deciding whether to accept the special sales order. (p. 1255)