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Requirement 1. Identify each cost in the income statement as either relevant or irrelevant to Deep Blue's decision. Data table Requirement 2. Prepare a differential
Requirement 1. Identify each cost in the income statement as either relevant or irrelevant to Deep Blue's decision. Data table Requirement 2. Prepare a differential analysis to determine whether Deep Blue should accept this special sales order. (Enter decreases to revenue or increas Decision: Requirement 3. Identify long-term factors Deep Blue should consider in deciding whether to accept the special sales order. In addition to determining the special order's effect on operating profits, Deep Blue's managers also should consider the following: A. How will Deep Blue's competitors react? Will they retaliate by cutting their prices and starting a price war? B. Will the special order customer come back again and again, asking for the same reduced price? C. Will Deep Blue's other customers find out about the lower sale price Deep Blue accepted from Floatsie? If so, will these other customers demand lowe D. All of the above
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