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Requirement 1. Prepare an incremental analysis to determine whether Coastal Safety should accept this special sales order. (Enter a 0 for any zero balances. Use
Requirement 1. Prepare an incremental analysis to determine whether Coastal Safety should accept this special sales order. (Enter a "0" for any zero balances. Use parentheses or a minus sign to indicate a negative contribution margin and/or a decrease in operating income from the special order.) Total Order (5,700 units) Incremental Analysis of Special Sales Order Decision Per Unit Revenue from special order Less variable expense associated with the order: Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order i Data Table Coastal Safety Contribution Margin Income Statement (Variable Costing) For Sales Volume of 31,000 Units Total $ 434,000 Sales revenue Less variable expenses: Variable manufacturing costs (DM, DL, Variable MOH) Variable operating expenses (selling and administrative) Contribution margin 93,000 112,000 229,000 Less fixed expenses: Fixed manufacturing overhead 121,000 88,000 Fixed operating expenses (selling and administrative) Operating income (loss) 20,000 Print Done A Requirements 1. Prepare an incremental analysis to determine whether Coastal Safety should accept this special sales order. 2. Identify long-term factors Coastal Safety should consider in deciding whether to accept the special sales order. Print Print Done Requirement 1. Prepare an incremental analysis to determine whether Coastal Safety should accept this special sales order. (Enter a "0" for any zero balances. Use parentheses or a minus sign to indicate a negative contribution margin and/or a decrease in operating income from the special order.) Total Order (5,700 units) Incremental Analysis of Special Sales Order Decision Per Unit Revenue from special order Less variable expense associated with the order: Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order
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