Data Table Buoy Contribution Margin Income Statement (Variable Costing) For Sales Volume of 28,000 Units Total Sales revenue 420,000 Less variable expenses: Variable manufacturing costs (DM, DL, Variable MOH) 168,000 104,000 148,000 Variable operating expenses (selling and administrative) Contribution margin Less fixed expenses: Fixed manufacturing overhead 124,000 85,000 Fixed operating expenses (selling and administrative) (61,000) Operating income (loss) Print Done 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 Water Fun Cruiselines wants to buy 5,000 vests from Buoy. Acceptance of the order will not increase Buoy's variable marketing and administrative expenses or any of its fixed expenses. The Buoy plant has enough unused capacity to manufacture the additional vests. Water Fun Cruiselines has offered $8 per vest, which is below the normal sale price of $15. Read the requirements. Requirement 1. Prepare an incremental analysis to determine whether Buoy should accept this special sales order. (Enter a "O" for any zero balances. Use parentheses or a minus sign to indicate a negative contribution margin and/or a decrease in operating income from the special order.) Total Order Incremental Analysis of Special Sales Order Decision Per Unit (5,000 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 Buoy should consider in deciding whether to accept the special sales order. In addition to determining the special order's effect on operating profits, Buoy's managers also should consider the following: O A. Will lowering the sale price tarnish Buoy's image as a quality brand? O B. How will Buoy's competitors react? Will they retaliate by cutting their prices and starting a price war? O c. Will Buoy's other customers find out about the lower sale price Buoy accepted from Water Fun? If so, will these other customers demand lower sale prices? O D. All of the above. O E. None of the above