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P25-21A (similar to) Question Help Sail On manufactures flotation vests in Charleston, South Carolina. Sail On's contribution margin income statement for the month ended October 31, 2018, contains the following data: E (Click the icon to view the cost information.) Suppose Water Works wishes to buy 4,500 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 58 per vest, which is below the normal sales price of $13. Read the requirements Requirement 1. Identify each cost in the income statement as either relevant or irrelevant to Sail On's decision. i Data Table Variable Manufacturing Costs Variable Selling and Administrative Costs Fixed Manufacturing Costs Fixed Selling and Administrative Costs Requirements 33.000 429,000 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. Sail On Income Statement For the Month Ended October 31, 2018 Sales in Units Net Sales Revenue $ Variable Costs: Manufacturing Selling and Administrative Total Variable Costs Contribution Margin Fixed Costs: Manufacturing Selling and Administrative Total Fixed Costs Operating Income 99,000 103,000 202,000 227,000 Print Done 130,000 85,000 215,000 12,000