Summer Fun manufactures flotation vests in San Francisco, California 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 Overlook Cruiselines wants to buy 5,000 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. Overlook Cruiselines has offered 56 per vest, which is below the normal sale price of $15. 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 X Data Table Per Unit (5,000 units) B 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 1 Summer Fun 2 Contribution Margin Income Statement (Variable Costing) 3 For Sales Volume of 30,000 Units 4 Total 5 Sales revenue $ 450,000 6 Less variable expenses: Requirements 210,000 103,000 $ 137,000 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. 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) $ 123,000 87,000 $ (73,000) Print Done Print Done Enter any number in the edit fields and then click Check