Nautical manufactures flotation vests in Tampa, Florida. Nautical's contribution margin income statement .Suppose Water Works wishes to buy 4,800 vests from Nautical. Nautical will not incur any for the month ended December 31, 2024, contains the following data: variable selling and administrative expenses on the special order. The Nautical plant has enough Click the icon to view the cost information.) unused capacity to manufacture the additional vests. Water Works has offered \$15 per vest, which is below the normal sales price of $19. Read the requirements. Requirement 1. Identify each cost in the income statement as either relevant or irrelevant to Nautical's decision. Requirement 3. Identify long-term factors Nautical should consider in deciding whether to accept the special sales order. In addition to determining the special order's effect on operating profits, Nautical's managers also should consider the following: A. Will the special order customer come back again and again, asking for the same reduced price? B. Will Nautical's other customers find out about the lower sale price Nautical accepted from Water Works? If so, will these other customers demand lower sale prices? C. How will Nautical's competitors react? Will they retaliate by cutting their prices and starting a price war? D. All of the above E. None of the above Nautical Income Statement For the Month Ended December 31, 2024 \begin{tabular}{lr} Sales in Units & 29,000 \\ \hline Net Sales Revenue & $51,000 \end{tabular} Variable Costs: \begin{tabular}{lr} Manufacturing & 116,000 \\ Selling and Administrative & 111,000 \\ \hline Total Variable Costs & 227,000 \\ \hline Contribution Margin & 324,000 \\ \hline Fixed Costs: & 123,000 \\ \hline Manufacturing & 92,000 \\ \hline Selling and Administrative & 215,000 \\ \hline Total Fixed Costs & 109,000 \\ \hline Operating Income \end{tabular}