Maritime manufactures flotation vests in Charleston, South Carolina. Maritime's contribution margin income statement for the month ended August 31, 2024, contains the following data: (Click the icon to view the cost information.) Read the requirements. Suppose Overlook wishes to buy 4,400 vests from Maritime. Maritime will not incur any variable selling and administrative expenses on the special order. The Maritime plant has enough unused capacity to manufacture the additional vests. Overlook has offered \$7 per vest, which is below the normal sales price of $15. Requirement 1. Identify each cost in the income statement as either relevant or irrelevant to Maritime's decision. Requirement 2. Prepare a differential analysis to determine whether Maritime should accept this special sales order. (Enter decreases to revenue or increases to costs with a parentheses or minus sign.) following data: EA (Click the icon to view the cost information.) Road the roauirements Data table order. The Maritime plant has enough unused capacity to manufacture the additional vests. Overlook has offered $7 per vest, which is below the normal sales price of $15. elevant to Maritime's decision. Iid accept this special sales order. Maritime manufactures flotation vests in Charleston, South Carolina. Maritime's contribution margin income statement for the month ended August 31, 2024, contains the following data: (Click the icon to view the cost information.) Rendithe recuirementsit Suppose Overlook wishes to buy 4,400 vests Maritime. Maritime will not incur any variable selling and administrative expenses on the order. The Maritime plant has enough unuse capacity to manufacture the additional vests. Overlook has offered $7 per vest, which is b the normal sales price of $15. Requirements 1. Identify each cost in the income statement as either relevant or irrelevant to Maritime's decision. 2. Prepare a differential analysis to determine whether Maritime should accept this special sales order. 3. Identify long-term factors Maritime should consider in deciding whether to accept the special sales order. Maritime manufactures flotation vests in Charleston, South Carolina. Maritime's contribution margin income statement for the month ended August 31, 2024, contains the following data: (Click the icon to view the cost information.) Read the requirements. Suppose Overlook wishes to buy 4,400 vests from Maritime. Maritime will not incur any variable selling and administrative expenses on the special order. The Maritime plant has enough unused capacity to manufacture the additional vests. Overlook has offered $7 per vest, which is below the normal sales price of $15. Requirement 1. Identify each cost in the income statement as either relevant or irrelevant to Maritime's decision. Variable Manufacturing Costs Variable Selling and Administrative Costs Fixed Manufacturing Costs Fixed Selling and Administrative Costs Requirement 2. Prepare a differential analysis to (Enter decreases to revenue or increases to costs ritime should accept this special sales order. (minus sign.) Maritime manufactures flotation vests in Charleston. South Suppose Overlook wishes to buy 4,400 vests from Requirement 2. Prepare a difterential analysis to determine whether Maritime should accept this special sales order. (Enter decreases to revenue or increases to costs with a parentheses or minus sign.) Decision: Requirement 3. Identify long-term factors Maritime should consider in deciding whether to accept the special sales order. In addition to determining the special order's effect on operating profits, Maritime's managers also should consider the following: A. Will Maritime's other customers find out about the lower sale price Maritime accepted from Overlook? If so, will these other customers demand lower sale prices? B. How will Maritime's competitors react? Will they retaliate by cutting their prices and starting a price war? C. Will the special order customer come back again and again, asking for the same reduced price? D. All of the above E. None of the above
