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Nautical manufactures flotation vests in San Diego, California. Nautical's contribution margin income statement for the most recent month contains the following data: (Click the icon
Nautical manufactures flotation vests in San Diego, California. Nautical's contribution margin income statement for the most recent month contains the following data: (Click the icon to view the cost information.) Suppose Optimum Cruiselines wants to buy 5,000 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. Optimum Cruiselines has offered $8 per vest, which is below the normal sale price of $14. Read the requirements. Requirement 1. Prepare an incremental analysis to determine whether Nautical should accept this special sales order. (Enter a "0" 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.) Data table Requirements 1. Prepare an incremental analysis to determine whether Nautical should accept this special sales order. 2. Identify long-term factors Nautical should consider in deciding whether to accept the special sales order
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