Aqua Fun manufactures flotation vests in Newark, New Jersey, Aqua Fun's contribution margin income statement for the most recent month contains the following data: (Click the icon to view the cost information) Suppose Summer Sports Cruiselines wants to buy 5,300 vests from Aqua Fun Acceptance of the order will not increase Aqua Fun's variable marketing and administrative expenses or any of its fixed expenses. The Aqua Fun plant has enough unused capacity to manufacture the additional vests Summer Sports Cruiselines has offered $9 per vest, which is below the normal sale price of $14. Read the requirements Requirement 1. Prepare an incremental analysis to determine whether Aqua Fun should accept this special sales order. (Enter a "for any zero balances. Use parentheses or a minus sign to indicate a negative contribution margin and a decrease in operating income from the special order) Total Order Incremental Analysis of Special Sales Order Decision Per Unit (5,300 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 Requirement 2. Identity long-term factors Aque 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 Fur's managers also should consider the following OA Wil lowering the sale price tamish Aque Fur's image as a quality brand? OB. WE Aqua Furr's other customers find out about the lower sale price Aqua Fun accepted from Summer Sports? If so, will these other customers demand lower sare prices? ir prices and starting a price war? Aqua FUN Mandracaras Hotn vests in Newark, New Jersey. Aqua Fun's contribution margin income statement for the most recent month contains the following data: (Click the icon to view the cost information.) Suppose Summer Sports Cruiselines wants to buy 5,300 vests from Aqua Fun. Acceptance of the order will not increase Aqua Fun's variable marketing and administrative expenses or any c unused capacity to manufacture the additional vests. Summer Sports Cruiselines has offered $9 per vest, which is below the normal sale price of $14. Read the requirements Total Order Incremental Analysis of Special Sales Order Decision Per Unit (5,300 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 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: OA. Will lowering the sale price tarnish Aqua Fun's image as a quality brand? OB. Will Aqua Fun's other customers find out about the lower sale price Aqua Fun accepted from Summer Sports? If so, will these other customers demand lower sale prices? OC. How will Aqua Fun's competitors react? Will they retaliate by cutting their prices and starting a price war? OD. All of the above. OE. None of the above. qua Fun's contribution margin income statement for the most recent month contains the following data: m A orts Data table -X sider profit a qua sale Ce by Aqua Fun Contribution Margin Income Statement (Variable Costing) For Sales Volume of 28,000 Units Sales revenue Less variable expenses: Variable manufacturing costs (DM, DL, Variable MOH) Variable operating expenses (selling and administrative) Contribution margin: Less fixed expenses: Fixed manufacturing overhead Fixed operating expenses (selling and administrative) Operating income (loss) Print Done Total $ 392,000 168,000 102,000 122,000 130,000 92,000 $ (100,000) ? nses or a Aqua Fun manufactures flotation vests in Newark, New Jersey. Aqua Fun's contribution margin income (Click the icon to view the cost information.) Suppose Summer Sports Cruiselines wants to buy 5,300 vests from Aqua Fun. Acceptance of the order unused capacity to manufacture the additional vests. Summer Sports Cruiselines has offered $9 per ves Read the requirements. Incremental Analysis of Special Sales Order Decision Per Unit Total Orde (5,300 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 addition Accept the special sales order. OA. Wi B. Wi Reject the special sales order. should consider in deciding whether to accept the s 1 operating profits, Aqua Fun's managers also shou s image as a quality brand? ut the lower sale price Aqua Fun accepted from Sum C. How will Aqua Fun's competitors react? Will they retaliate by cutting their prices and starting a pr D. All of the above. E. None of the above