coastal safety manufactures flotation vests in miami, florida. coastal safety contribution margin income statement for the most recent month contains the following data:

suppose overton cruiselines wants to buy 4700 vests from coastal safety. Acceptance of the order will not increase coastal safety variable marketing and administrative expenses or any of its fixed expenses. the coastal safety plant has enough unused capacity to manufacture the additional vests. overton cruiselines has offered $8 per vest, which is below the normal sale price of $14.

Data Table Coastal Safety Contribution Margin Income Statement (Variable Costing) For Sales Volume of 30,000 Units Total $ 420 000 Sales revenue 112 000 $ Less variable expenses Variable manufacturing costs DM DL Variable MOH Variable operating expenses seling and administrate Contribution margin Less forced expenses Fixed manufacturing owerhead Exedoceransebenses saling and destra 5 Operating income Total Order Per Unit (4,700 units) Incremental Analysis of Special Sales Order Decision 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 Decision Requirement 2. Idently long-term facton Coastal Safety should consider in deciding whether to accept the special sales ordet In addition to determining the special orders effect on operating profits, Coastal Safety's managers also should consider the following O A Willowuring the sale price tarnish Coastal Satuy's image as a quality brand? OB. How will Coastal Safety's competitors react? We they retaliate by cutting their prices and starting a price war? OC wa Coastal Safety's other customers find out about the lower sale price Coastal Safety accepted from Overton if oo will the other customers demand lower malo prices? D. All of the above CE None of the above