Summer Fun manufactures flotation vests in Philadelphia, Pennsylvania. Summer Fun's contribution margin income statement for the most recent month contains the following data: 5 Click the icon to view the cost information.) Suppose Summer Sports Cruiselines wants to buy 5,300 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. Summer Sports Cruiselines has offered $10 per vest, which is below the normal sale price of $16. Read the fequirements 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 Per Unit (5,300 units) Incremental Analysis of Special Sales Order Decision 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 This Question: 1 pt 1 of 3 (0 complete) This Quiz: 3 pts po Data Table X ving data: 1 Summer Fun manufactures flotation vests in Philadelphia, Pe (Click the icon to view the cost information.) Suppose Summer Sports Cruiselines wants to buy 5,300 ves Summer Fun plant has enough unused capacity to manufactu Read the requirements. Requirement 1. Prepare an incremental analysis to determin margin and/or a decrease in operating income from the speci The special order will not affect fixed expenses. The brice of $16 2 Summer Fun Contribution Margin Income Statement (Variable Costing) For Sales Volume of 29,000 Units 3 heses or a minus sign to indicate a negative contributio 4 Total 5 Sales revenue $ 464.000 87,000 110,000 Incremental Analysis of Special Sales Order Deci Revenue from special order Less variable expense associated with the order: Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the orde 267,000 6 Less variable expenses 7 Variable manufacturing costs (DM, DL, Variable MOH) 8 Variable operating expenses (selling and administrative) 9 Contribution margin 10 Less fixed expenses: 11 Fixed manufacturing overhead 12 Fixed operating expenses (selling and administrative) 13 Operating income (loss) $ 127,000 93.000 Increase (decrease) in operating income from the specia 47,000 Decision: Enter any number in the edit fields and then continue to th Print Done 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. How will Summer Fun's competitors react? Will they retaliate by cutting their prices and starting a price war? OB. Will lowering the sale price tarnish Summer Fun's image as a quality brand? O C. Will Summer Fun's other customers find out about the lower sale price Summer Fun accepted from Summer Sports? If so, will these other customers demand lower sale prices? OD. All of the above. O E. None of the above