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Nautical manufactures flotation vests in Chattanooga, Tennessee. Nautical's contribution margin income statement for the most recent month contains the following (Click the icon to view

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Nautical manufactures flotation vests in Chattanooga, Tennessee. Nautical's contribution margin income statement for the most recent month contains the following (Click the icon to view the cost information) Suppose McGregor Cruiselines wants to buy 4,800 vests from Nautical Acceptance of the order will not require any variable selling and administrative expenses. The special order will not affect fixed expenses. The Nautical plant has enough unused capacity to manufacture the additional vests. McGregor Cruiselines has offered $11 per vest, which is below the normal sale price of $15. Read the requirements Requirement 1. Prepare an incremental analysis to determine whether Nautical should accept this special sales order. (Enter a "O" for any zero balances. Use parentheses or a minus sign to indicate a negative contribution margin and/or a decrease in operating income from the special order) Total Order (4,800 units) Incremental Analysis of Special Sales Order Decision Revenue from special order Less variable expense associated with the order: Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Decision: Requirement 2. Identity long-term factors Nautical should consider in deciding whether to accept the special sales order. Enter any number in the edit fields and then continue to the next question. i Data Table co Nautical Contribution Margin Income Statement (Variable Costing) For Sales Volume of 32,000 Units ndid Total fs 480,000 160,000 109,000 Sales revenue Less variable expenses: Variable manufacturing costs (DM, DL, Variable MOH) Variable operating expenses (selling and administrative) Contribution margin Less fixed expenses: Fixed manufacturing overhead Fixed operating expenses (selling and administrative) Operating income (loss) 211,000 ass ging 127,000 95,000 (11,000) erm Print Done Fields

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