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Aqua Fun manufactures flotation vests in Charleston, South Carolina. Aqua Fun's contribution margin ome statement for the month ended May 31, 2018, contains the following

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Aqua Fun manufactures flotation vests in Charleston, South Carolina. Aqua Fun's contribution margin ome statement for the month ended May 31, 2018, contains the following data Suppose Water Works wishes to buy 4200 vest selling and administrative expenses on the spec to manufacture the additional vests. Water Work price of $15 Click the icon to view the cost information.) Read the Requirement 1. Identify each cost in the income statement as either relevant or irelevant to Aqua Fun's aniable Manufacturing Costs Variable Selling and Administrative Costs Fixed Manufacturing Costs Fixed Selling and Administrative Costs Requirement 2. Prepare a differential analysis to determine whether Aqua Fun should accept this special sales order (Enter decreases t o revenue or increas es i in operating income Decision Requirement 3. identrfy 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 special order customer come back again and again, asking for the same reduced price? will Agua Fun's other customers d out about the lower sale price Aqua Fun accepted from water works? If so, will these other customers demand lowers How will Aqua Fun's competitors react? Will they retaliate by cutting their pnces and starting a pnce war? O D. All of the above O E. None of the above This Quiz: 100 pts ton, South Carolina Aqua Fun's contribution margin 2018, contains the following data Suppose Water Works wshes to buy 4,200 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. Water Works has offered $7 per vest, which is below the normal sales price of $15 e statement as either relevant or irrelevant to Aqua Fun's decision s to determine whether Aqua Fun should accept this special sales order. (Enter decreases to revenue or increases to costs with a parentheses or minus sign) qua Fun should consider in deciding whether to accept the special sales order effect on operating profits, Aqua Fun's managers also should consider the following e back again and again, asking for the same reduced price? If so, will these other customers demand lower sale prices? act? Will they ret aliate by cutting their prices and starting a pice war? selling and administrative expenses on the special order ce of $15 Aqua Fun Income Statement 31,000 $ 465,000 increases to costs wi 93,000 104,000 197,000 268,000 n operating income Total Vaniable Costs Contribution Margin 127,000 86,000 213,000 s find out about the lower s O D. All of the above

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