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Sail On manufactures flotation vests in Charleston, South Carolina. Sail Or's contribution margin hoome statement for the month ended October 31, 2024, contains the following

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Sail On manufactures flotation vests in Charleston, South Carolina. Sail Or's contribution margin hoome statement for the month ended October 31, 2024, contains the following data: (Click the icon to view the cost information.) Read the requirements. Requirement 1. Identify each cost in the income statement as either relevant or irrelevant to Sail On's decision. Suppose Floatsie wishes to buy 4,000 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. Floatsie has offered $7 per vest, which is below the normal sales price of $18. Data table Data table 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. Sail On markiactives fotaion yests in Guarbston, South Carolina, 5 al Orrs cortibeten murgh : Requirement 1. Identity each cost in the income statument as erther relevark or irobvare to Sal Or's decition. Decision: Requirement 3. Idenlify long-1erm factors Sal On should oonsider in decoding whoiher to accept the special sales orbat. Decision: Requirement 3. Idontify long-term factors Sail On should consider in deciding whother to accept the special salos order. In addition to determining the opocial order's effect on operating profits. Sail Or's managers also should consider the following A. Wil Sai On's other customers find out about the lower sale price Sail On acoepted from Floatbie? H so, Wil these other customern demand lower sale pirces? B. Wil the special order customer come back again and again, asking for the same reduced price? C. How wili Sal On's competitors react? Will they tetaliate by cutting thair prices and starting a price war? D. tui of the above E. None of the above Expected decrease in fixed manufacturing costs Ri Expected decrease in selling and administrative costs t or irrelevant to Sail On's Ve Vc Expected decrease in variable manufacturing costs Fi. Expected increase in fixed manufacturing costs Fi. Expected increase in selling and administrative costs Ri Expected increase in variable manufacturing costs in operating income Decision

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