Maritime manufactures flotation vests in Charleston, South Carolina. Maritime's contribution margin income statement for the month ended July 31, 2024, contains the following data:

Suppose Overton wishes to buy 3,000 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. Overton has offered $14 per vest, which is below the normal sales price of $18.

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 July 31, 2024, contains the following data: (Click the icon to view the cost information.) Read the requirements. Suppose Overton wishes to buy 3,800 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. Overton has offered $14 per vest, which is below the normal sales price of $18. Requirement 1. Identify each cost in the income statement as either relevant or irrelevant to Maritime's decision. Data table Print Done 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. 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 orde (Enter decreases to revenue or increases to costs with a parentheses or minus sign.) 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.) 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 follmuinn 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. How will Maritime's competitors react? Will they retaliate by cutting their prices and starting a price war? B. Will the special order customer come back again and again, asking for the same reduced price? C. Will Maritime's other customers find out about the lower sale price Maritime accepted from Overton? If so, will these other customers demand lower sale prices? D. All of the above E. None of the above