i would really appreciate help with the requirments of this home work question it got me really confused
Deep Blue manufactures flotation vests in San Francisco, California 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 Water Fun Cruiselines wants to buy 5,000 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. Water Fun Cruiselines has offered S8 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) Requirements - X prder units) Reve Less va 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. Contri Less Print Done Incred Decision Enter any number in the edit fields and then continue to the next question. o te 63 Chip Deep Blue manufactures flotation vests in San Francisco, California Deep Blue's contribution margin income statement for the most recent month contains the following data (Click the icon to view the cost information.) bier will not increase Deep Blue's Data Table ht has enough unused capacity to the normal sale price of $16. this special sales order. (Enter a argin and/or a decrease in Deep Blue Contribution Margin Income Statement (Variable Costing) For Sales Volume of 32,000 Units Total al Order po units) $ Sales revenue 512,000 160,000 112,000 S 240,000 Less variable expenses Variable manufacturing costs (DM, DL, Variable MOH) Variable operating expenses (selling and administrative) Contribution margin Less fixed expenses Fixed manufacturing overhead Fixed operating expenses (selling and administrative) Operating income (loss) $ 124,000 87,000 29,000 $ Print Done a 63 Deep Blue manufactures flotation vests in San Francisco, California. 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 Water Fun Cruiselines wants to buy 5,000 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. Water Fun Cruiselines has offered $8 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 "O" 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 (5,000 units) Revenue from special order Less variable expense associated with the order Variable manufacturing costs Per Unit Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Decision Requirem ue should consider in deciding whether to accept the special sales order. Accept the special sales order. Reject the special sales order ? Enter any tinue to the next question. a o te 63 Deep Blue manufactures flotation vests in San Francisco, California Deep Blue's contribution margin income statement for the most recent month contains the following data: E (Click the icon to view the cost information) Suppose Water Fun Cruiselines wants to buy 5,000 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. Water Fun Cruiselines has offered S8 per vest, which is below the normal sale price of $16. Read the requirements Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Decision Requirement 2. Identify long term factors Deep Blue should consider in deciding whether to accept the special sales order, In addition to determining the special order's effect on operating profits, Deep Blue's managers also should consider the following: O A. Will lowering the sale price tarnish Deep Blue's image as a quality brand? B. How will Deep Blue's competitors react? Will they retaliate by cutting their prices and starting a price war? C. Will Deep Blue's other customers find out about the lower sale price Deep Blue accepted from Water Fun? If so, will these other customers demand lower sale prices? OD. All of the above. E. None of the above Enter any number in the edit fields and then continue to the next