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Deep Blue manufactures flotation vests in Guelph. Deep Blue's contribution margin income statement for the most recent month contains the following data: View the income
Deep Blue manufactures flotation vests in Guelph. Deep Blue's contribution margin income statement for the most recent month contains the following data: View the income statement. Suppose Summer Sports wants to buy 4,900 vests from Deep Blue. Acceptance of the order will not increase Deep Blue's variable marketing and administrative expenses or any of its fixed expenses. The Deep Blue plant has enough unused capacity to manufacture the additional vests. Summer Sports has offered $12 per vest, which is below the normal sale price of $16. Requirements 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. Requirement 1. Prepare an incremental analysis to determine whether Deep Blue should accept this special sales order. Complete the incremental analysis in the table below. (Use parentheses or a minus sign to enter a decrease in operating income.) Income statement Deep Blue manufactures flotation vests in Guelph. Deep Blue's contribution margin income statement for the most recent month contains the following data: View the income statement. Suppose Summer Sports wants to buy 4,900 vests from Deep Blue. Acceptance of the order will not increase Deep Blue's variable marketing and administrative expenses or any of its fixed expenses. The Deep Blue plant has enough unused capacity to manufacture the additional vests. Summer Sports has offered $12 per vest, which is below the normal sale price of $16. Requirements 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. Requirement 1. Prepare an incremental analysis to determine whether Deep Blue should accept this special sales order. Complete the incremental analysis in the table below. (Use parentheses or a minus sign to enter a decrease in operating income.) Income statement
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