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Buoy manufactures flotation vests in Orlando, Florida. Buoy's contribution margin income statement for the most recent month contains the following data: (Click the icon

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Buoy manufactures flotation vests in Orlando, Florida. Buoy's contribution margin income statement for the most recent month contains the following data: (Click the icon to view the cost information.) Suppose McGregor Cruiselines wants to buy 5,500 vests from Buoy. Acceptance of the order will not require any variable selling and administrative expenses. The special order will not affect fixed expenses. The Buoy plant has enough unused capacity to manufacture the additional vests. McGregor Cruiselines has offered $5 per vest, which is below the normal sale price of $15. Read the requirements. Requirements Data table Re ma es orde 1. Prepare an incremental analysis to determine whether Buoy should accept this special sales order. 3 2 Contribution Margin Income Statement (Variable Costing) For Sales Volume of 28,000 Units Re Les 2. Identify long-term factors Buoy should consider in deciding whether to accept the special sales order. 4 5 Sales revenue Total $ 420,000 6 Less variable expenses: 7 Variable manufacturing costs (DM, DL, Variable MOH) 168,000 Print Done 8 Co 9 Variable operating expenses (selling and administrative) Contribution margin 108,000 S 144,000 Les 10 Less fixed expenses: Incrasso Idocrassol in onerating income from the enarial order S 123,000 11 Fixed manufacturing overhead 12 Fixed operating expenses (selling and administrative) 91.000 S (70,000) 13 Operating income (loss) Activate Windows Type here to search iT 0 M Print 49F Go to Settings to activate Windows Done ENG 10:17 PM 4/24/2022

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