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Nautical manufactures flotation vests in Charleston, South Carolina. Nautical's contribution margin incomeSuppose Rafter wishes to buy 4,100 vests from Nautical. Nautical will not incur any
Nautical manufactures flotation vests in Charleston, South Carolina. Nautical's contribution margin incomeSuppose Rafter wishes to buy 4,100 vests from Nautical. Nautical will not incur any variable selling and statement for the month ended March 31, 2018, contains the following data: administrative expenses on the special order. The Nautical plant has enough unused capacity to manufacture the additional vests. Rafter has offered 59 per vest, which is below the normal sales price of $16 (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 Nautical's decision Variable Manufacturing Costs Variable Selling and Administrative Costs Fixed Manufacturing Costs Fixed Selling and Administrative Costs Data Table Requirements Nautical Income Statement For the Month Ended March 31, 2018 1. Identify each cost in the income statement as either relevant or irrelevant to Nautical's decision Prepare a differential analysis to determine whether Nautical should accept this special sales order Identify long-term factors Nautical should consider in deciding whether to accept the special sales order 2. Sales in Units Net Sales Revenue Variable Costs 3. 30,000 S 480,000 Print Done Manufacturing Selling and Administrative Total Variable Costs Contribution Margin Fixed Costs: 90,000 107,000 197,000 283,000 120,000 89,000 209,000 $ 74,000 Manufacturing Selling and Administrative Total Fixed Costs Operating Income PrintDone
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