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Summer Fun manufactures flotion vests in Charleston, South Carolina Summer Fur's contribution margin income statement for the month ended July 31, 2018, contains the following

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Summer Fun manufactures flotion vests in Charleston, South Carolina Summer Fur's contribution margin income statement for the month ended July 31, 2018, contains the following data: Click the icon to view the cost information) Read the requirements Suppose Water Works wishes to buy 4.000 vests from Summer Fun Summer Fun will not incur any variable weiling administrative experses on the special order. The Summer Fun plant has enough unused capacity to manufacture additional vots Water Works has offered 58 per vest, which is below the normal sales price of $15. Requirement 1. Identify each cost in the income statement as either relevant or relevant to Summer Fun's decision Variable Manufacturing Costs Variable Selling and Administrative Costs Fixed Manufacturing Costs Fixed 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 press or minus ign) in operating income Decision Requirement 3. Identify long term factors Summer Fun should consider in deciding whether to cept the special sales order In addition to determining the special order's effect on operating prof Summer Fun's managers also should consider the following OA How wilar Fur's competitors they relate by cutting the prices and starting price war? OB W Summer Furisother customers find out about the lower le price Summer Fun cepted from Wwe Works? wil these other customers demand lower le pros? OG wa the special order customer come back again and again, asking for the same reduced price? OD. All of the above Choose from any list or enter any number in the input fields and then continue to the next gestion Save for at MacBook Air 9 & 7 0 % 5 $ 4 8 6 2 3 B 1 of 3 South Carolina. Summer Fun's contribution margin income me following data: Suppose Water Works wishes to buy 4,000 vests from Summer Fun Summer F administrative expenses on the special order. The Summer Fun plant has enoug ad $8 per vest, which is below the normal 0 Data Table ment as either relevant or id Summer Fun Income Statement 35,000 525,000 $ For the Month Ended July 31, 2018 Sales in Units Net Sales Revenue Variable Costs Manufacturing Selling and Administrative ermine whether Summer Fun to costs with a parentheses or minus sign.) 175.000 104,000 279.000 246,000 Total Variable Costs Contribution Margin Fored Costs Manufacturing Selling and Administrative Total Fbced Costs Fun should consider in decidir 126,000 87.000 on operating profits, Summer 213.000 33,000 $ Operating Income Wil they retaliate by cutting the about the lower sale price su again and again, asking for the lower sale prices? Print Done input fields and then continue to the next question. MacBook Air Il 80 77 FB VYO * $ 4 % 5 & 7 6 8 9 0

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