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Requirements 1. Identify each cost in the income statement as either relevant or irrelevant to Nautical's decision. 2. Prepare a differential analysis to determine
Requirements 1. Identify each cost in the income statement as either relevant or irrelevant to Nautical's decision. 2. Prepare a differential analysis to determine whether Nautical should accept this special sales order, 3. Identify long-term factors Nautical should consider in deciding whether to accept the special sales order. Nautical Income Statement For the Month Ended December 31, 2024 Sales in Units Net Sales Revenue Decision Print Done in operating income Requirement 3. Identify long-term factors Nautical should consider in deciding whether to accep In addition to determining the special order's effect on operating profits, Nautical's managers also OA. Will the special order customer come back again and again, asking for the same reduced B. How will Nauticals competitors react? Will they retaliate by cutting their prices and startin OC. Will Nautical's other customers find out about the lower sale price Nautical accepted from OD. All of the above Variable Costs Manufacturing Selling and Administrative Total Variable Costs Contribution Margin Fixed Costs Manufacturing Selling and Administrative Total Fixed Costs Operating Income Print Done 35,000 S 630,000 175,000 104,000 279,000 r minus sign 351,000 130,000 92,000 222,000 $ 129,000
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