Summer Fun manufactures flotation vests in Charleston, South Carolina. Summer Fun's contribution margin income statement for the most recent month contains the following data: (Click the icon to view the cost information.) Suppose Boats-n-More Cruiselines wants to buy 4,700 vests from Summer Fun. Acceptance of the order will not require any variable selling and administrative expenses. The special order will not affect fixed expenses. The Summer Fun plant has enough unused capacity to manufacture the additional vests. Boats - n-More Cruiselines has offered $11 per vest, which is below the normal sale price of $16. Read the requirements. Requirement 1. Prepare an incremental analysis to determine whether Summer Fun 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 (4,700 units) 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 Summer Fun Contribution Margin Income Statement (Variable Costing) For Sales Volume of 31,000 Units Total Sales revenue 496,000 Less variable expenses: Variable manufacturing costs (DM, DL, Variable MOH) 186,000 108,000 Variable operating expenses (selling and administrative) Contribution margin 202,000 Less fixed expenses: Fixed manufacturing overhead 124,000 Fixed operating expenses (selling and administrative) 94,000 (16,000) Operating income (loss) $ $ Decision: Requirement 2. Identify 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 lowering the sale price tarnish Summer Fun's image as a quality brand? OB. How will Summer Fun's competitors react? Will they retaliate by cutting their prices and starting a price war? O C. Will Summer Fun's other customers find out about the lower sale price Summer Fun accepted from Boats - n-More? If so, will these other customers demand lower sale prices? OD. All of the above. O E. None of the above