Marine Supply manufactures flotation vests in Newark, New Jersey. Marine Supply's contribution margin income statement for the most recent month contains the following data: (Click the icon to view the cost information.) Suppose Optimum Cruiselines wants to buy 5,200 vests from Marine Supply. Acceptance of the order will not require any variable selling and administrative expenses. The special order will not affect fixed expenses. The Marine Supply plant has enough unused capacity to manufacture the additional vests. Optimum Cruiselines has offered $7 per vest, which is below the normal sale price of $15. Read the requirements Requirement 1. Prepare an incremental analysis to determine whether Marine Supply 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.) Total Order Per Unit (5,200 units) Incremental Analysis of Special Sales Order Decision Revenue from special order Less variable expense associated with the order: Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Enter any number in the edit fields and then click check Answer B 1 A Marine Supply 2 Contribution Margin Income Statement (Variable Costing) 3 For Sales Volume of 30,000 Units 4 Total $ 450,000 90,000 8 111,000 5 Sales revenue 6 Less variable expenses: 7 Variable manufacturing costs (DM, DL, Variable MOH) 8 Variable operating expenses (selling and administrative) 9 Contribution margin 10 Less fixed expenses: 11 Fixed manufacturing overhead 12 Fixed operating expenses (selling and administrative) 13 Operating income (loss) $ 249,000 $ 123,000 92,000 S 34,000 1. Prepare an incremental analysis to determine whether Marine Supply should accept this special sales order. 2. Identify long-term factors Marine Supply should consider in deciding whether to accept the special sales order