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2x) P25-21A (similar to) Question Help Deep Sea manufactures flotation vests in Charleston, South Carolina. Deep Sea's contribution margin income statement for the month ended January 31, 2018, contains the following data: (Click the icon to view the cost information.) Suppose Floatsie wishes to buy 3,900 vests from Deep Sea. Deep Sea will not incur any variable selling and administrative expenses on the special order. The Deep Sea plant has enough unused capacity to manufacture the additional vests. Floatsie has offered $12 per vest, which is below the normal sales price of $18. Read the requirements Requirement 1. Identify each cost in the income statement as either relevant or irrelevant to Deep Sea's decision. Variable Manufacturing Costs relevant Variable Selling and Administrative Costs irrelevant Fixed Manufacturing Costs irrelevant Fixed Selling and Administrative Costs irrelevant Requirement 2. Prepare a differential analysis to determine whether Deep Sea should accept this special sales order. (Enter decreases to revenue or increases to costs with a parentheses or minus sign.) Requirement 2. Prepare a differential analysis to determine whether Deep Sea should accept this special sales order. (Enter decreases to revenue or increases to costs with a parentheses or minus sign.) Expected increase in fixed manufacturing costs Expected increase in operating income Choose from any list or enter any number in the input fields and then click Check Answer Deep Sea Income Statement For the Month Ended January 31, 2018 Sales in Units 30,000 $ 540,000 Net Sales Revenue Variable Costs: Manufacturing 90,000 105,000 Selling and Administrative Total Variable Costs 195,000 Contribution Margin 345,000 Variable Costs: Manufacturing 90,000 105,000 Selling and Administrative Total Variable Costs 195,000 345,000 Contribution Margin Fixed Costs: Manufacturing 125,000 93,000 Selling and Administrative Total Fixed Costs 218,000 $ 127,000 Operating Income 1. Identify each cost in the income statement as either relevant or irrelevant to Deep Sea's decision. 2. Prepare a differential analysis to determine whether Deep Sea should accept this special sales order. 3. Identify long-term factors Deep Sea should consider in deciding whether to accept the special sales order. Drint Dono