Question
Aqua Fun manufactures flotation vests in Charleston, South Carolina. Aqua Fun's contribution margin income statement for the month ended December 31, 2024, contains the
Aqua Fun manufactures flotation vests in Charleston, South Carolina. Aqua Fun's contribution margin income statement for the month ended December 31, 2024, contains the following data (Click the icon to view the cost information) Data table Aqua Fun Income Statement For the Month Ended December 31, 2024 35,000 S 595,000 Suppose Floatsie wishes to buy 4,400 vests from Aqua Fun Aqua Fun will not incur any variable selling and administrative expenses on the special order The Aqua Fun plant has enough unused capacity to manufacture the additional vests Floatsie has offered $12 per vest, which is below the normal sales price of $17 Requirements D 1. Identify each cost in the income statement as either relevant or irrelevant to Aqua Fun's decision 2. Prepare a differential analysis to determine whether Aqua Fun should accept this special sales order 3. Identity long term factors Aqua Fun should consider in deciding whether to accept the special sales order - X Sales in Units Net Sales Revenue Variable Costs Manufacturing 175,000 Selling and Administrative i 103.000 278,000 Total Variable Costs Contribution Margin 317,000 Fixed Costs Manufacturing 122,000 88,000 Sellinn and Administration Pont Done Clase all
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