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Deep Bive manufactures flotation vests in San Diego, Calfornia. Deep Blue's contribution margin income statement for the most fecent month contains the following data: (fiB)
Deep Bive manufactures flotation vests in San Diego, Calfornia. Deep Blue's contribution margin income statement for the most fecent month contains the following data: (fiB) (Cick the ioon to view the cost information.) Suppose Boat Satefy Cruiselines wants to buy 4,900 vests trom. Deep Blue. Acceptance of the order will not require any variable selling and administrative expenses. The special order will not affect foed expenses. The Deep. Brue plant has enough unused capacity to manutacture the addeional vests. Boat Satety Cruiselines has offered 55 per vert, wich is below the normal sale price of $15 Fiend the Requirement 1. Prepare an incrementat anaysis to delemine whether Deop Blue should accept this special takes order (Enter a "O" for any zere balances. Use parentheses or a mines sign to indicate a negative contribuition margin andlor a decrease in operating incorve from the special ordec.) 1. Prepare an incremental analysis to determine whether Deep Blue should accept this special sales order. 2. Identify long-term factors Deep Blue should consider in deciding whether to accept the special sales order. Data table
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