Deep Blue manufactures flotation vests in Charleston, South Carolina. Deep Blue's contribution margin

income statement for the month ended December $31,2016,$ contains the following data:

DEEP BLUE

Income Statement

For the Month Ended December $31,2016$

Suppose Overboard wishes to buy $4,700$ vests from Deep Blue. Deep Blue will not incur any variable selling

and administrative expenses on the special order. The Deep Blue plant has enough unused capacity to

manufacture the additional vests. Overboard has offered $$7$ per vest, which is below the normal sales price

of $$16.$

Requirements:

Identify each cost in the income statement as either relevant or irrelevant to Deep Blue's decision.

Prepare a differential analysis to determine whether Deep Blue should accept this special sales order.$|$

Identify long$-$term factors Deep Blue should consider in deciding whether to accept the special sales

order