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Data table Aqua Fun manufactures flotation vests in San Francisco, California. Aqua Fun's contribution margin income statement for the most recent month contains the following
Data table Aqua Fun manufactures flotation vests in San Francisco, California. Aqua Fun's contribution margin income statement for the most recent month contains the following data: Click the icon to view the cost information.) The Aqua Fun plant has enough unused capacity to manufacture the additional vests. Boats - n - More Cruiselines has offered $6 per vest, which is below the normal sale price of $15. Read the requirements. contribution margin and/or a decrease in operating income from the special order.) 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: A. Will Aqua Fun's other customers find out about the lower sale price Aqua Fun accepted from Boats - n - More? If so, will these other customers demand lower sale prices? B. Will lowering the sale price tarnish Aqua Fun's image as a quality brand? C. How will Aqua Fun's competitors react? Will they retaliate by cutting their prices and starting a price war? D. All of the above. E. None of the above
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