P8-61B (similar to) Question Help Sale Sailing manufactures fotation vests in Chattanooga, Tennessen Sale Saling's contribution margin Income statement for the most recent month contains the following data: Click the icon to view the cost information Suppose Boat Safety Cruiselines wants to buy 5,600 vests from Safe Sailing, Acceptance of the order will not require any variable selling and administrative expenses The special order will not affect fixed expenses. The Sale Sailing plant has enough unused capacity to manufacture the additional vests, Boat Safety Cruiselines has offered 54 per vest, which is below the normal sale price of $14 Read the requirements or Requirement 1. Prepare an incremental analysis to determine whether Sale Sailing should accept this special sales order. (Enter a "e" for any zero balances. Use parentheses or a minus sign to indicate a negative contribution margin and/or a decrease in operating inckme from the special order) Total Order Incremental Analysis of Special Sales Order Decision Per Unit (5,600 units) Revenue from special order Loss 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 click Check Answer. 2 parto remaining Clear All Check Answer 1 Data Table - B 1 2 Safe Sailing Contribution Margin Income Statement (Variable Costing) For Sales Volume of 31,000 Units 3 4 Total 5 Sales revenue $ 434,000 6 Less variable expenses: 93,000 103,000 238,000 $ 7 Variable manufacturing costs (DM, DL, Variable MOH) 8 Variable operating expenses (selling and administrative) 9 Contribution margin 10 Less fixed expenses: 11 Fixed manufacturing overhead 12 Fixed operating expenses (selling and administrative) 13 Operating income (loss) $ 124,000 86,000 28,000 t Print Done i Requirements X e Sp 1. Prepare an incremental analysis to determine whether Safe Sailing should accept this special sales order. 2. Identify long-term factors Safe Sailing should consider in deciding whether to accept the special sales order. wi Print Done