Mermaid manufactures flotation vests in Charleston, South Carolina. Mermaid's contribution margin income statement for the month ended August 31,2024 , contains the following date (Click the icon to view the cost information.) Read the Requirement 1. Identify each cost in the income statement as either relevant or irrelevant to Mermaid's decision. Data table d accept this special sales order. (Enter decreases to revenue or increases to costs wit) Decision: Requirement 3. Identify long-term factors Mermaid should consider in deciding whether to accept the special sales order. In addition to determining the special order's effect on operating profits, Mermaid's managers also should consider the following: .. Will the special order customer come back again and again, asking for the same reduced price? 1. Will Mermaid's other customers find out about the lower sale price Mermaid accepted from Overtown? If so, will these other customers demand lower sale prices? - :. How will Mermaid's competitors react? Will they retaliate by cutting their prices and starting a price war? D. All of the above E. None of the above Mermaid manufactures flotation vests in Charlest (Click the icon to view the cost information.) Suppose Overtown 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 Read the requirements Data table x Mermaid manufactures flotation vests in Charleston, South Carolina. Mermaid's contribution margin income statement for the month ended August 31 , 2024, contains the f (Click the icon to view the cost information.) Read the requirements. Requirement 1. Identify each cost in the income statement as either relevant or irrelevant to Mermaid's decision. 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 in operating income C F I deciding whether to accept the special sales order. Ir 3, Mermaid's managers also should consider the following: ..sking for the same reduced price? B. Will Mermaid's other customers find out about the lower sale price Mermaid accepted from Overtown? If so, will these other customers demand lower sale prices? C. How will Mermaid's competitors react? Will they retaliate by cutting their prices and starting a price war? D. All of the above E. None of the above Requirement 2. Prepare a differential analysis to determine whether Mermaid should accept this ]] in operating income Decision: Requirem ould consider in deciding whether to acce In addition operating profits, Mermaid's managers als A. Wi ain and again, asking for the same reducec B. Wi the lower sale price Mermaid accepted fro Mermaid manufactures flotation vests in Charle: (Click the icon to view the cost information.) Read the requirements. Requirement 1. Identify each cost in the income statement as either relevant or irrelevant to Mermaid's decision. Data table x Requirement 2. Prepare a differential analysis to determine whether Mermaid should accept this special sales order. (Enter decreases to revenue or increases to costs wit) In addition to determining the special order's effect on operating profits, Mermaid's managers also should consider the following: . Will the special order customer come back again and again, asking for the same reduced price? 3. Will Mermaid's other customers find out about the lower sale price Mermaid accepted from Overtown? If so, will these other customers demand lower sale prices? C. How will Mermaid's competitors react? Will they retaliate by cutting their prices and starting a price war? O D. All of the above
