Need help with requirement 1 and 2

Maritime manufactures flotation vests in Tampa, Florida. Maritime's contribution margin income statement for the most recent month contains the following data: E (Click the icon to View the cost information.) Suppose Boats - n - More Cmiselines wants to buy 4.700 vests from Maritime. Acceptance of the order will not increase Maritime's variable marketing and administrative expenses or any of its xed expenses. The Maritime plant has enough unused capacity to manufacture the additional vests. Boats - n - More Cniiselines has offered $12 per vest, which is below the normal sale price Of $16. Read th e g] merits. Requirement 1. Prepare an incremental analysis to determine whether Maritime 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 0rd er 0 Data Table - X Incremental Analysis of Special Sales Order Decision Per Unit (4,100 units) Revenue from special order I Less variable expense associated with the order: Maritime Variable manufacturing costs Contribution Margin Income Statement (Variable Costing) _ _ _ For Sales Volume of 31,000 Units Contribution margin Total Less: Additional xed expenses associated with the order Sales revenue 496,000 Increase (decrease) in operating income from the special order Less variable expenses: Decision: Variable manufacturing costs (DM, DL, Variable MOH) 186,000 Variable operating expenses (selling and administrative) 108'000 Requirement 2. Identify long-term factors Maritime should consider in deciding whether to accept the special sales order. _ _ _ Contribution margin 202,000 In addition to determining the special orders effect on operating prots, Maritime's managers also should consider the following: Less xed expenses: 0 A. How will Maritime's competitors react? Will they retaliate by cutting their prices and starting a price war? Fixed man'JfaCMing Overhead 1241000 0 B. will Maritime's other customers nd out about the lower sale price Maritime accepted from Boats - n - More? If so, will these other customers demand lower sale Fixed operating expenses (selling and administrative) 88'000 O C. Will lowering the sale price tarnish Maritime's image as a quality brand? Operating income (loss) 5 (101000) Enter any number in the edit elds and then continue to the next question. Print I Dorie