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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 Summer Sports Cruiselines wants to buy 5,300 vests from Nautical. Acceptance of the order will not increase Nautical's variable marketing and administrative expenses or any of its fixed expenses. The Nautical plant has enough unused capacity to manufacture the additional vests. Summer Sports Cruiselines has offered $10 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 Incremental Analysis of Special Sales Order Decision Per Unit (5,300 units) 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 Enter any number in the edit fields and then continue to the next
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