> Problems Group A Learning Objectives 1, 2 10.21A Identifying relevant information and making pricing decisions Deep Blue manufactures flotation vests in Charleston, South Carolina. Deep Blue's contribution margin income statement for the month ended December 31, 2016, contains the following data: 2. 59,400 DEEP BLUE Income Statement For the Month Ended December 31, 2016 Sales in Units 30,000 Sales Revenue $ 480,000 Variable Costs: Manufacturing 150,000 Selling and Administrative 110,000 Total Variable Costs 260,000 Contribution Margin 220,000 Fixed Costs: 121,000 Manufacturing 85,000 Selling and Administrative 206,000 Total Fixed Costs $ 14,000 Operating Income Suppose Overboard wishes to buy 4,700 vests from Deep Blue. Deep Blue will not incur any variable selling and administrative expenses on the special order. The Deep Blue plant has enough unused capacity to manufacture the additional ves Overboard has offered $7 per vest, which is below the normal sales price of $16. Requirements 1. Identify each cost in the income statement as either relevant or irrelevant to Deep Blue's decision. 2. Prepare a differential analysis to determine whether Deep Blue should accept this special sales order. 3. Identify long-term factors Deep Blue should consider in deciding whether to accept the special sales order