Safe Sailing manufactures flotation vests in Miami, Florida. Safe Sailing's contribution margin income statement for the most recent month contains the following data: EEB (Click the icon to view the cost information.) Suppose Water Fun Cruiselines wants to buy 4,500 vests from Safe Sailing. Acceptance of the order will not increase Safe Sailing's variable marketing and administrative expenses or any of its fixed expenses. The Safe Sailing plant has enough unused capacity to manufacture the additional vests. Water Fun Cruiselines has offered S9 per vest, which is below the normal sale price of $14 Read the requirements. Data Table Requirement 1. Prepare an incremental analysis to determine whether Safe Sailing should accept this special sales order. (Enter a '0" for any decrease in operating income from the special order.) For Sales Volume of 30,000 Units Total Order Total Incremental Analysis of Special Sales Order Decision Per Unit (4,500 units) Sales revenue $420,000 Revenue from special order Less variable expense associated with the order Less variable expenses: Variable manufacturing costs (DM, DL, Variable MOH) 210,000 110,000 Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Decision: Requirement 2. Identify long-term factors Safe Sailing should consider in deciding whether to accept the special sales order. In addition to determining the special orders effect on operating profits, Safe Sailing's managers also should consider the following: O A. How will Safe Sailing's competitors react? Will they retaliate by cutting their prices and starting a price war? Variable operating expenses (selling and administrative) Contribution margin Less fixed expenses: $100,000 Fixed manufacturing overhead 127,000 95,000 $122,000) Fioxed operating expenses (selling and administrative) Operating income (loss) PrintDone B. O C. OD. 0 E. Will Safe Sailing's other customers find out about the lower sale price Safe Sailing accepted from Water Fun? If so, will these other customers demand lower sale prices? Will lowering the sale price tarnish Safe Sailing's image as a quality brand? All of the above. None of the above