Deep Blue manufactures flotation vests in Charleston, South Carolina. Deep Blue's contribution margin income statement for the most recent month contains the following data: (Click the icon to view the cost information.) Suppose Optimum Cruiselines wants to buy 5,400 vests from Deep Blue. Acceptance of the order will not require any variable selling and administrative expenses. The special order will not affect fixed expenses. The Deep Blue plant has enough unused capacity to manufacture the additional vests. Optimum Cruiselines has offered $11 per vest, which is below the normal sale price of $16. Read the requirements. Requirement 1. Prepare an incremental analysis to determine whether Deep Blue should accept this special sales order. (Enter a "0" 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 (5,400 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 A 1 2 Deep Blue Contribution Margin Income Statement (Variable Costing) For Sales Volume of 33,000 Units 3 4 Total 5 Sales revenue $ 528,000 6 Less variable expenses: 7 99,000 Variable manufacturing costs (DM, DL, Variable MOH) Variable operating expenses (selling and administrative) 8 103,000 9 Contribution margin $ 326,000 10 Less fixed expenses: 11 127,000 Fixed manufacturing overhead Fixed operating expenses (selling and administrative) 12 85,000 13 Operating income (loss) $ 114,000