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Summer Fun manufactures flotation vests in Charlotte, North Carolina. Summer Fun's contribution margin income statement for the most recent month contains the following data: (Click

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Summer Fun manufactures flotation vests in Charlotte, North 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 5,700 vests from Summer Fun. Acceptance of the order will not require any variable selling and administrative expenses. The special order will not affect foxed expenses. The Summer Fun plant has enough unused capacity to manufacture the additional vests. Boats - n-More Cruiselines has offered $12 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 (5,700 units) Revenue from special order Less variable expense associated with the order: Variable manufacturing costs Contribution margin Less: Additional foxed expenses associated with the order Increase (decrease) in operating income from the special order Decision: Enter any number in the edit fields and then continue to the next question Requirements 1. Prepare an incremental analysis to determine whether Summer Fun should accept this special sales order. 2. Identify long-term factors Summer Fun should consider in deciding whether to accept the special sales order. Print Dong Data Table Summer Fun Contribution Margin Income Statement (Variable Costing) For Sales Volume of 32,000 Units Total 512,000 Sales revenue Less variable expenses: Variable manufacturing costs (DM, DL, Variable MOH) 160,000 111,000 Variable operating expenses (selling and administrative) Contribution margin Less fixed expenses: 241,000 Fixed manufacturing overhead 124,000 89,000 Fixed operating expenses (selling and administrative) Operating income (loss) 28,000 Print Done

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