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Requirement 3. Identify long-term factors Deep Sea should consider in deciding whether to accept the special sales order. In addition to determining the special order's
Requirement 3. Identify long-term factors Deep Sea should consider in deciding whether to accept the special sales order. In addition to determining the special order's effect on operating profits, Deep Sea's managers also should consider the following: O A. How will Deep Sea's competitors react? Will they retaliate by cutting their prices and starting a price war? OB. Will Deep Sea's other customers find out about the lower sale price Deep Sea accepted from Overtown? If so, will these other customers demand lower sale prices? O C. Will the special order customer come back again and again, asking for the same reduced price? OD. All of the above O E. None of the above i X Data Table 33,000 462,000 99,000 111,000 Deep Sea Income Statement For the Month Ended March 31, 2018 Sales in Units Net Sales Revenue $ Variable Costs: Manufacturing Selling and Administrative Total Variable Costs Contribution Margin Fixed Costs: Manufacturing Selling and Administrative Total Fixed Costs $ Operating Income 210,000 252,000 130,000 91,000 221,000 31,000 Print Done
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