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Aqua un manufactures on vests in San Francisco Catomia Aqua Faston marginamento contain the wings Clotion to view the conformation Suppose Whun Cine wants to buy 5,600 vostrom Aqua Fur Acceptance of the order witwy wig anderers. The special order will ideal per Two unused capacity to manufacture the additional vests Water Fun Crushas offered seve, which below the normale of Rand the moment Requirement 1. Prepare an incremental analysis to determine whether Aqua Fun should accept this special sales order. decrease in operating income from the special order.) Total Order (5,600 units) Per Unit 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 MINE Increase (decrease) in operating income from the special order Decision: Requirement 2. Identity long-term factors Aqua Fun should consider in deciding whether to accept the special sales ordet. In addition to determining the special order's effect on operating profits. Aqua Fur's managers also should consider the following: O A Wil lowering the sale price tarnish Aqua Fur's image as a quality brand? B. How will Aqua Fur's competitors react? Will they retaliate by cutting their prices and starting a price war? OC. Will Aqua Fun's other customers find out about the lower sale price Aqua Fun accepted from Water Fun? It 30, will these other customers demand tower sale price? OD. All of the above E. None of the above. B 1 Aqua Fun 2 Contribution Margin Income Statement (Variable Costing) 3 For Sales Volume of 32,000 Units 4 Total 5 Sales revenue $ 512,000 6 Less variable expenses: 160,000 8 7 Variable manufacturing costs (DM, DL, Variable MOH) 8 Variable operating expenses (selling and administrative) 9 Contribution margin 106,000 $ 246,000 10 Less fixed expenses: 11 $ 123,000 Fixed manufacturing overhead Fixed operating expenses (selling and administrative) 12 90,000 $ 33,000 13 Operating income (loss)