Suppose Overlook wishes to buy 4,100 vests from Deep Blue. Deep Blue will not incur any variable selling and administrative expenses on the special order. The Deep Blue plant has enough unused capacity to manufacture the additional vests. Overlook has offered 58 per vest, which is below the normal sales price of $18. Deep Blue manufactures flotation vests in Charleston, South Carolina. Deep Blue's contribution margin income statement for the month ended August 31, 2024, contains the following data: (Click the icon to view the cost information.) Read the requirements. Requirement 1. Identify each cost in the income statement as either relevant or irrelevant to Deep Blue'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 Deep Blue should accept this special sales order. (Enter decreases to revenue or increases to costs with a parentheses or minus sign.) in operating income Decision: Requirement 3. Identify long-term factors Deep Blue should consider in deciding whether to accept the special sales order. In addition to determining the special order's effect on operating profits, Deep Blue's managers also should consider the following: O A. How will Deep Blue's competitors react? Will they retaliate by cutting their prices and starting a price war? O B. Will Deep Blue's other customers find out about the lower sale price Deep Blue accepted from Overlook? If so, will these other customers demand lower sale prices? O C. Will the special order customer come back again and again, asking for the same reduced price? O D. All of the above O E. None of the above Data table Deep Blue Income Statement For the Month Ended August 31, 2024 Sales in Units 30,000 Net Sales Revenue $ 540,000 Variable Costs: 150,000 Manufacturing Selling and Administrative 109,000 Total Variable Costs 259,000 Contribution Margin 281,000 Fixed Costs: Manufacturing Selling and Administrative 130,000 91,000 Total Fixed Costs 221,000 $ 60,000 Operating Income