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please help with whole question. all info is below. thank you so much! 8-2 Sail On manufactures flotation vests in Charleston, South Carolina. Sail On's
please help with whole question. all info is below. thank you so much!
Sail On manufactures flotation vests in Charleston, South Carolina. Sail On's contribution margin income statement for the month ended July 31, 2024, contains the following data: Click the icon to view the cost information.) Read the requirements Suppose Water Works wishes to buy 4,700 vests from Sail On. Sail On will not incur any variable selling and administrative expenses on the special order. The Sail On plant has enough unused capacity to manufacture the additional vests. Water Works has offered $9 per vest, which is below the normal sales price of $15. Data table Sail On Income Statement For the Month Ended July 31, 2024 Sales in Units 29,000 Net Sales Revenue $ 435,000 Variable Costs: Manufacturing 116,000 102,000 Selling and Administrative Total Variable Costs 218,000 Contribution Margin 217,000 Fixed Costs: Manufacturing 122,000 86,000 Selling and Administrative Total Fixed Costs 208,000 nnnn Requirements 1. Identify each cost in the income statement as either relevant or irrelevant to Sail On's decision. 2. Prepare a differential analysis to determine whether Sail On should accept this special sales order. 3. Identify long-term factors Sail On should consider in deciding whether to accept the special sales order. Requirement 1. Identify each cost in the income statement as either relevant or irrelevant to Sail On's decision Variable Manufacturing Costs Variable Selling and Administrative Costs Fixed Manufacturing Costs Fixed Selling and Administrative Costs Requirement 2. Prepare a differential analysis to determine whether Sail On should accept this special sales order. (Enter decreases to revenue or increases to conts win a parentheses or minus sign) in operating income Decision Requirement 3. Identify long-term factors Sail On should consider in deciding whether to accept the special sales order In addition to determining the special order's effect on operating profits, Sail On's managers also should consider the following: O A Wil Salon's other customers find out about the lower sale price Sal On accepted from Water Works? If so, will these other customers demand lower sale prices? OB Wit the special order customer come back again and again, asking for the same reduced price? OC How wil Salon's competitors react? Will they retaliate by cutting their prices and starting a price war? OD. All of the above OE None of the above 8-2
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