Mermaid manufactures flotation vests in Charleston, South Carolina. Mermaid's contribution margin income statement for the month ended August 31, 2018, contains the following data: B Click the icon to view the cost information.) Suppose Floatsie wishes to buy 4,500 vests from Mermaid. Mermaid will not incur any variable selling and administrative expenses on the special order. The Mermaid plant has enough unused capacity to manufacture the additional vests. Floatsie has offered $6 per vest, which is below the normal sales price of $14. Read the requirements. Requirement 1. Identify each cost in the income statement as either relevant or irrelevant to Mermaid's decision. Variable Manufacturing Costs relevant Variable Selling and Administrative Costs irrelevant Fixed Manufacturing Costs irrelevant Fixed Selling and Administrative Costs irrelevant Requirement 2. Prepare a differential analysis to determine whether Mermaid should accept this special sales order. (Enter decreases to revenue or increases to costs with a parentheses or minus sign.) in operating income i Requirements 1. Identify each cost in the income statement as either relevant or irrelevant to Mermaid's decision. 2. Prepare a differential analysis to determine whether Mermaid should accept this special sales order. 3. Identify long-term factors Mermaid should consider in deciding whether to accept the special sales order. Mermaid Income Statement For the Month Ended August 31, 2018 Sales in Units Net Sales Revenue $ Variable Costs: Manufacturing Selling and Administrative 42,000 588,000 210,000 107,000 317,000 271,000 Total Variable Costs Contribution Margin Fixed Costs: Manufacturing 121,000 85.000 Selling and Administrative Total Fixed Costs 206,000 65,000 $ Operating Income