Sail On manufactures flotation vests in Charleston, South Carolina. Sail On's contribution margin income statement for the month ended January 31, 2024, contains the following data: (Click the icon to view the cost information.) Read the requirements. Suppose Water Works wishes to buy 3,900 vests from Sail On. Sail On will not incur any variable selling and administrative expenses on the special order. The Sail On plant has enough unused capacity to manufacture the additional vests. Water Wo has offered $10 per vest, which is below the normal sales price of $20. Requirement 1. Identify each cost in the income statement as either relevant or irrelevant to Sail On's decision. Variable Manufacturing Costs Variable Selling and Administrative Costs Fixed Manufacturing Costs Fixed Selling and Administrative Costs Data table Sail On Income Statement For the Month Ended January 31, 2024 Sales in Units 30,000 Net Sales Revenue $ 600,000 Variable Costs: Manufacturing Selling and Administrative Total Variable Costs Contribution Margin 150,000 107,000 257,000 343,000 Fixed Costs: Manufacturing 125,000 Selling and Administrative 86,000 211,000 Total Fixed Costs 132,000 Operating Income Requirements 1. Identify each cost in the income statement as either relevant or irrelevant to Sail On's decision. 2. Prepare a differential analysis to determine whether Sail On should accept this special sales order. 3. Identify long-term factors Sail On should consider in deciding whether to accept the special sales order. Print Done