Summer Fun manufactures flotation vests in Charleston, South Carolina Summer Fun's contribution margin income statement for the month ended May 31, 2024, contains the following data Click the icon to view the cost information Suppose Overlook wishes to buy 4 100 vests from Summer Fun Summer Fun will not incur any variable selling and administrative expenses on the special order The Summer Fun plant has enough unused capacity to manufacture the additional vests Overlook has offered S8 per vest which is below the normal sales price of $18 Read the requirements Summer Fun Income Statement For the Month Ended May 31, 2024 Sales in Units 41,000 Net Sales Revenue $ 738,000 Variable Costs: Manufacturing 205,000 103,000 Selling and Administrative Total Variable Costs 308,000 Contribution Margin 430,000 Fixed Costs Manufacturing 128,000 91,000 Selling and Administrative 219,000 Total Fixed Costs $ 211,000 Operating Income Requirement 1. Identity each cost in the income statement as either relevant or irrelevant to Summer Fun's decision Variable Manufacturing Costs Variable Selling and Administrative Costs Fixed Manufacturing Costs Food Selling and Administrative Costs Requirement 2. Prepare a differential analysis to determine whether Summer Fun should accept this special sales order. (Enter decreases to revenue or increases to costs with a parentheses or minus sign) in operating income Decision Requirement 3. Identity long term factors Summer Fun should consider in deciding whether to accept the special sales order In addition to determining the special order's effect on operating profits, Summer Fun's managers also should consider the following O A Will Summer Fun's other customers find out about the lower sale price Summer Fun accepted from Overlook? if so, will these other customers demand lower sale prices? OB. How will Summer Fun's competitors react? Will they retaliate by cutting their prices and starting a price war? OC. Will the special order customer come back again and again, asking for the same reduced price? OD. All of the above O E. None of the above