Submit Quiz This Question: 1 pt 1 of 3 (0 complete) This Quiz: 3 pis possible Buoy manufactures flotation vests in San Diego, Calfomia. Buoy's contribution margin income statement for the most recent month contains the following data E (Cick the icon to view the cost information) Suppose Overlook Cruiselines wants to buy 5,500 vests from Buoy. Acceptance of the order will not increase Buoy's variable marketing and administralive expenses or any of its foxed expenses. The Buoy plant has enough unused capacity to manufacture the additional vests. Overlook Cruiselines has offered $10 per vest, which is below the normal sale price of $16 Read the requirements Requirement 1. Prepare an incremental analysis to determine whether Buoy should accept this special sales order. (Enter a "0 for any zero balances. Use parentheses or a minus sign to indicate a negative contribution margin and/or a decrease in operating income from the special order) Total Order Incremental Analysis of Special Sales Order Decision Per Unit (5,500 units) Revenue from special order Less variable expense associated with the order Variable manufacturing costs Contribution margin Less: Additional foced expenses associated with the order Increase (decrease) in operating income from the special order Decision Requirement 2. Identify long-term factors Buoy should consider in deciding whether to accept the special sales order In addition to determining the special order's effect on operating profits, Buoy's managers also should consider the following OA Will Buoy's other Customers find out about the lower sale price Buoy accepted from Overlook? If so, will these other customers demand lower sale prices? Enter any number in the edit fields and then continue to the next question 08/01/19 Chapter 12 Homework CmeE Buoy's contribution margin income statement for the most recent month contains the folowing data (Cick the icon to view the cost information.) Suppose Overlook Cruiselines wants to buy 5,500 vests from Buoy. Acceptance of the order will not increase Buoy's variable marketing and administrative exper expenses. The Buoy plant has enough unused capacty to manufadture the additional vests Overlook Cruiselines has offered$10 per vest, which is below the ne Read the requirements wwwww e Revenue from special order Less variable expense associated with the order 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 Buoy should consider in deciding whether to accept the special sales order in addition to determining the special order's effect on operating profits, Buoy's managers also should consider the following prices OA Will Buoy's other customers find out about the lower sale price Buoy accepted from O B. How will Buoy's competitors react? Will they retaliate by cutting their prices and starting a price war? O C. Will lowering the sale price tarnish Buoy's image as a quality brand? O D. Overlook? If so, will these other customers demand lower s All of the above. O E. None of the above Enter any number in the adit fialds and then continue to the next question 08/01/19 AD chanter 12homework hp Botation vests in San Diego. California Buoy's contribution margin income statement for the most recent month contains the following data: o view the cost information Cruiselines wants to buy plant has enOugh unuse i Data Table Xdministralive expenses hich is below the norma mts al order Buoy se associated with the or Contribution Margin Income Statement (Variable Costing) cturing costs For Sales Volume of 30,000 Units Total Sales revenue $ 480,000 ed expenses associated w Less variable expenses ) in operating income fron Variable manufacturing costs (DM, DL, Variable MOH) 210,000 104,000 Variable operating expenses (selling and administrative) Contribution margin $ 166,000 entify long-term factors Bu Less fixed expenses 127.000 88,000 mining the special order's Fixed manufacturing overhead d lower sale prices? other customers find out a Fixed operating expenses (selling and administrative) (49,000) oy's competitors react? W Operating inCome (loss) g the sale price tarnish Bu Dove Print Done above in the edit fields and then continue to the next