Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Nautical manufachires flotation vests in Charkuston, Sout Carobina Nauticals contrbution margin income statement for the monts couded October 31, 2024, containa Suppose Opeimurm wishes to

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Nautical manufachires flotation vests in Charkuston, Sout Carobina Nauticals contrbution margin income statement for the monts couded October 31, 2024, containa Suppose Opeimurm wishes to buy 3,900 vests trom Nautical Nautical will not ncia the fallowing data: any varlabl selling and administrative expenses on the special arder The (Clict the icon to view the cost information \} Nautical plant has enoight unused capaciby lo manulacture the odditional vists Optimam has offered 59 per vost, which ia beliow the nounal gates price of 516 Read the reguiterriants Requirement 1. Identify each cost in the income statement ais tilher relevant or iteloyant to Nouticain decition parentheses or minus tigh ) Data table er. (Enter decreas Data table Requirements 1. Identify each cost in the income statement as either relevant or irrelevant to Nautical's decision. 2. Prepare a differential analysis to determine whether Nautical should accept this special sales order. 3. Identify long-term factors Nautical should consider in deciding whether to accept the special sales order Requirement 2. Prepare a differential anialysis to iutical should accept thas special sales order (Enter deo par entheses or minus aigh) irrelovant relevant in operating incompe Docision Requirement 3. Identify long-term factors Nautical should consider in deciding whethar to accept the speciat sales order Requirement 2. Prepare a differential analysis to determine whether Nautical should accept this special sales order. (Enter deres. parentheses or minus sign.) rother to accept the spicial sates ordet Decision Requirem ould consider in daciding whether to accopt the special sales order In addition operating profits, Nauticil's managers atso should consider the following Accept the special order ain and again, asking for the same reduced price? B. Wi Do not accept the speciat order the lower sale price Nautical accepted from Optimum? If so, will thene other customers demand for C. How will Nauticars competitors react? Will they rotaliate by cutting their prices and stating on price war? D. All of the above E. None of the above Requirement 3. Identify long tem factors Nautical should consider in deciding whether to accept the special sales orde In addition to determining the special order's effect on operating prolits. Nauticalis mainagers also should consider then following A. Will the special order customer come back apgain and again, asking for the same reduced prico? B. Wi Nauticals other customers find out about the lower sale price Nautical accopted trom Oplimum? If so. will these other customers bemand loweir sule pricea? C. How wit Naiticals competitars reaci? Will they retallate by cutsing their prices and starting a price war? D. All of the abore E. None of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Water Audits And Loss Control Programs

Authors: American Water Works Association

4th Edition

1625761007, 978-1625761002

More Books

Students also viewed these Accounting questions