Points: 2 of 2 Close Buoy manufactures flotation vests in San Francisco, California, Buoy'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 Cruiselines wants to buy 4,700 vests from Buoy. Acceptance of the order will not require any variable selling and administrative expenses. The special order will not affect fixed expenses. The Buoy plant has enough unused capacity to manufacture the additional vests. Boats - n - More Cruiselines has offered $5 per vest, which is below the normal sale price of $15. Read the requirements i Click the Icon to see the Worked Solution. Requirement 1. Prepare an incremental analysis to determine whether Buoy should accept this special sales order. (Enter a "0" for any zero balances. Use parentheses or a minus sign decrease in operating income from the special order.) Total Order Incremental Analysis of Special Sales Order Decision Per Unit (4,700 units) Revenue from special order 5.00 S 23,500 Less variable expense associated with the order: 8.00 28,200 Variable manufacturing costs S (1.00) Contribution margin (4,700) Less: Additional fixed expenses associated with the order (4,700) Increase (decrease) In operating Income from the special order Decision: Reject the special Requirement 2. Identify long-term factors Buoy should consider in deciding whether to accept the special sales order. In addition to deter ning the special order's effect on operating profits, Buoy's managers also should consider the following: )A. Wil Buoy's other customers find out about the lower sale price Buoy accepted from Boats - n - More? If so, will these other customers demand lower sale prices