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Maritime Manufactures Rotation veste in Charleston, South Carolina Maritime's contribution margin income statement for the month ended July 31, 2018, contains the following data: B
Maritime Manufactures Rotation veste in Charleston, South Carolina Maritime's contribution margin income statement for the month ended July 31, 2018, contains the following data: B Click the icon to view the cost information.) Supooee Overboard wishes to buy 4,400 veste from Wartime. Maritime wil not incur any variable selling and acministrative expenses on the special order. The Maritime plant has enough unused capacity to manufacture the additional vests. Overboard has offered $4 per vest, which Is below the nomal sales price of $14. Read the resultamania i Data Table Requirement 1. Identify each cost in the income staternent as either relevant or intelevant to Maritime's decision. Variable Manufacturing Costs relevant Variable Selling and Administrative Cusis irrelevant Fixed Manufacturing Costs irrelevant Fixed Seling and Administrative Costs irrelevant Maritime Income Statement 40.000 Requirement 2. Prepare a differential analysis ta determine whether Maritime should accept this special sales arder. (Enter decreases to revenue or increases to casts with a parentheses or minus sigr.) Expected increase in revenue Experted increase in variable manufacturing costs $ 560,000 Expachad decrease in aperating income For the Month Ended July 31, 2018 Sales in Units Net Sales Revenue Variabile Cosis: Manufacturing Selling and Administrative Tolal Variable Cosis Contribution Margin Fixed Coets: Manufacturing Selling and Administrative 200.000 105.000 305.000 255.000 122.000 95.000 217.000 Total Fixed Costs $ 38,000 Onorating Income Print Done
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