Aqua Fun manufactures flotation vents in San Diego, California. Aqua Fun's contribution margin income statement for the most recent month contain the following data m (Click the icon to view the cost information) Suppose Boot Safety Cruiseline wants to buy 5,600 vests from Aqua Fun Acceptance of the order will not require any variable selling and administrative expenses. The special order will not affect fixed expenses. The Aqua Fun plant has enough unused capacity to manufacture the additional vents. Bont Safety Cruiselines has offered $10 per vest, which is below the normal sale price of $14 Read the requirements Requirement 1. Prepare an incremental analysis to detormine whether Aqua Fun should accept this special sales order. (Enter a o for any zoro balances. Use parentheses or a minus sign to indicate a negative contribution margin and/or a decrease in operating income from the special order) Total Order Incremental Analysis of Special Sales Order Decision Per Unit (5,600 units) Revenue from special order Less variable expense associated with the order: Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Decision: Requirem in should consider in deciding whether to accept the special sales order. Accept the special sales order, In addition on operating profits, Aqua Fun's managers also should consider the following: Reject the special sales order. Enter any number in meets and then continue to the next question. 2 Requirement 2. Identify long-term factors Aqua Fun should consider in deciding whether to accept the special sales order, In addition to determining the special order's effect on operating profits, Aqua Fun's managers also should consider the following: O A. Will Aqua Fun's other customers find out about the lower sale price Aqua Fun accepted from Boat Safety? If so, will these other customers demand lower sale prices? B. Will lowering the sale price tarnish Aqua Fun's image as a quality brand? C. How will Aqua Fun's competitors react? Will they retaliate by cutting their prices and starting a price war? D. All of the above. O E. None of the above. San Diego, California. Aqua Fun's contribution margin income statement for the most recent month contains the matio to bu Data Table Hministrative e plan pffered $10 per the od lated w me front Aqua Fun Contribution Margin Income Statement (Variable Costing) For Sales Volume of 31,000 Units Total Sales revenue 434,000 Less variable expenses: Variable anufacturing costs (DM, DL, Variable MOH) 186,000 Variable operating expenses (selling and administrative) 103,000 Contribution margin 145,000 Less fixed expenses: Fixed manufacturing overhead 125.000 91.000 Fixed operating expenses (selling and administrative) $ (71.000) Operating income (loss) ctors Ag order's hers find mers demand lower sal arnish Ad itors read Print Done s and then continue to the next