Nautical manufactures flotation vests in Tampa, Florida. Nautical's contribution margin income statement for the most recent month contains the following data: Click the icon to view the cost information.) Suppose Boats-n-More Cruiselines wants to buy 5,600 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. Boats - n-More Cruiselines has offered $8 per vest, which is below the normal sale price of $16. 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.) Total Order Incremental Analysis of Special Sales Order Decision Per Unit (5,600 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 Decision: Requirement 2. 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: O A. How will Nautical's competitors react? Will they retaliate by cutting their prices and starting a price war? OB. Will Nautical's other customers find out about the lower sale price Nautical accepted from Boats - n - More? If so, will these other customers demand lower sale prices? C. Will lowering the sale price tarnish Nautical's image as a quality brand? OD. All of the above. O E. None of the above. - X i Data Table Nautical Contribution Margin Income Statement (Variable Costing) For Sales Volume of 28,000 Units Total $ 448,000 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 196,000 104,000 $ 148,000 $ 125,000 95,000 Fixed operating expenses (selling and administrative) $ (72,000) Operating income (loss) Print Done