Mermaid manufactures flotation vests in Charleston, South Carolina Mermaids contribution margin income statement for the month ended August 31, 2018, contains the following data (Click the icon to view the cost information) Read the requirements Guest Holo Suppose Optimum wishes to buy 4,700 vests from Mumaid. Murmaid will not incur any variable deling and administrative expenses on the special de The Mermaid plant has enough unused capacity to cure the additionales Optimum has offered 55 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 Mermaids decision Variable Manufacturing Costs Variable Selling and Administrative Costs Fixed Manufacturing Costs Fixed Selling and Administrative Costs V ist and then cnck Check Answer belc Mermaid Income Statement For the Month Ended August 31, 2018 Sales in Units 31,000 Net Sales Revenue $ 465,000 Variable Costs: Manufacturing 93,000 105,000 Selling and Administrative Total Variable Costs 198,000 Contribution Margin 267,000 Fixed Costs Net Sales Revenue cost infor 405,000 ity to manufactu below the nom Variable Costs Manufacturing Selling and Administrative 93,000 105,000 cost in the 198,000 tive Costs Total Variable Costs Contribution Margin Fixed Costs Manufacturing 267 000 e Costs 125.000 85.000 Seiling and Administrative Total Fixed Costs 210.000 Operating Income 57,000 uch cost in Bts strative cl 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 ative Cos