Deep Sea manufactures flotation vests in Charleston, South Carolina. Deep Sea's contribution margin income statement for the month ended October 31, 2018, contains the following data: Click the icon to view the cost information.) Suppose Water Works wishes to buy 3,900 v The Deep Sea plant has enough unused cap- of $13 Read the requirements Requirement 1. Identify each cost in the income statement as either relevant or irrelevant to Deep Sea's decision. Variable Manufacturing Costs relevant Variable Selling and Administrative Costs irrelevant Fixed Manufacturing Costs irrelevant Fixed Selling and Administrative Costs irrelevant Requirement 2. Prepare a differential analysis to determine whether Deep Sea should accept this special sales order. (Enter decreases to revenue or increases to costs with a parentheses or minus sign.) in operating income Suppose Water Works wishes to buy 3,900 vests from Deep Sea. Deep Sea will not incur any variable selling and administrative expenses on the special order. The Deep Sea plant has enough unused capacity to manufacture the additional vests. Water Works has offered $2 per vest, which is below the normal sales price of $13. Data Table Deep Sea Income Statement For the Month Ended October 31, 2018 Sales in Units 41,000 533,000 $ de Net Sales Revenue Variable Costs: Manufacturing 205,000 103,000 308,000 225,000 Selling and Administrative Total Variable Costs Contribution Margin Fixed Costs: Manufacturing Selling and Administrative Total Fixed Costs 128,000 85,000 213,000 12,000 $ Operating Income Print Print Done 0 Requirements - X 1. Identify each cost in the income statement as either relevant or irrelevant to Deep Sea's decision. 2. Prepare a differential analysis to determine whether Deep Sea should accept this special sales order. 3. Identify long-term factors Deep Sea should consider in deciding whether to accept the special sales order. Print Done