Mermaid manufactures flotation vests in Charleston, South Carolina. Mermaid's contribution margin income statement for the month ended March 31, 2016, contains the following data:

Sales in Units

29,000

Sales Revenue

$522,000

Variable Costs:

Manufacturing

116,000

Selling and Administrative

102,000

Total Variable Costs

218,000

Contribution Margin

304,000

Fixed Costs:

Manufacturing

130,000

Selling and Administrative

92,000

Total Fixed Costs

222,000

Operating Income

$82,000

a. Suppose Water Works wishes to buy 3,900 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 vest. Water Works has offered $11 per vest, which is below the normal sales price of $18. Prepare a differential analysis to determine whether Mermaid should accept this special sales order. (Enter decreases to profits with a parentheses or minus sign.)

	Expected increase in revenue:
	Expected increase in variable manufacturing costs:
	Expected increase	in operating income: