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help begin{tabular}{l|l} SafeSailingmanufacturesflotationvestsinCharleston,SouthCarolina.SafeSailingscontributionmarginincomestatementforthemonthendedDecember31,2024, & SupposeOvertownwishestobuy4,100vestsfromSafeSailing.SafeSailingwillnotincuranycontainsthefollowingdata: (Click the icon to view the cost information.) selling and administrative expenses on the special order. The Safe

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\begin{tabular}{l|l} SafeSailingmanufacturesflotationvestsinCharleston,SouthCarolina.SafeSailingscontributionmarginincomestatementforthemonthendedDecember31,2024, & SupposeOvertownwishestobuy4,100vestsfromSafeSailing.SafeSailingwillnotincuranycontainsthefollowingdata: \\ (Click the icon to view the cost information.) selling and administrative expenses on \\ the special order. The Safe Sailing plant has \\ enough unused capacity to manufacture the \\ additional vests. Overtown has offered $9 \\ per vest, which is below the normal sales price of \\ $13. \end{tabular} Requirement 1. Identify each cost in the income statement as either relevant or irrelevant to Safe Sailing's decision. Requirement 2. Prepare a differential analysis to determine whether Safe Sailing should accept this special sales order. (Enter decreases to revenue or increases to costs with a parentheses or minus sign.) in operating income Decision: Requirement 3. Identify long-term factors Safe Sailing should consider in deciding whether to accept the special sales order. In addition to determining the special order's effect on operating profits, Safe Sailing's managers also should consider the following: A. Will the special order customer come back again and again, asking for the same reduced price? B. Will Safe Sailing's other customers find out about the lower sale price Safe Sailing accepted from Overtown? If so, will these other customers demand lower sale prices? C. How will Safe Sailing's competitors react? Will they retaliate by cutting their prices and starting a price war? D. All of the above E. None of the above the following: same reduced price? Data table e Sailing accepted from ir prices and starting a price war? In addition to determining the special order's effect on operating profits, Safe Sailing's managers also should consider the following: reduced price? Requirements li accepted from 1. Identify each cost in the income statement as either relevant or irrelevant to Safe Sailing's decision. 2. Prepare a differential analysis to determine whether Safe Sailing should accept this special sales order. 3. Identify long-term factors Safe Sailing should consider in deciding whether to accept the special sales order

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