This Question: 16 pts Time Remaining: 0045 15 Sub Test 2 of 13 2 complete This Test: 100 ps possible Summer Fun manufactures flotation vests in Philadelphia, Pennsylvania Summer Fun's corbution mari come statement for the most recent month contains the following du (Click the icon to view the cost information) Suppose Sparkle Cuisines wishes to buy 4600 vests from Summer Fun Acceptance of the order will not require any variable selling and administrative expenses. The special order will not affected expenses. The Summer Fun plant has enough used capacity to manufacture the additional vs Sparkle Cores has ord 56 per vest which is below the male price of it Read the requirements Requirement 1. Prepare an incremental analysis to determine whether Summer Fun should accept this speciales order ( Era o for any zero balances. Use parenthese or a minus sindicate a negative combin margin andior a decrease in operating income from the special order) Total Onder Incremental Analysis of Special Sales Order Decision Per Unit 14,600 Revenue from special order Less variable expense associated with the order Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the order Hm...mm Enter any number in the edit fields and then continue to the next question This Question: 16 pts Time Real 2 of 13 (2 complete Summer Fun manufactures flotation vests in Philadelphia, Pennsylvania 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 Sparkle Cruiselines wishes to buy 4.600 vests from Summer Fun Acceptance of the order will not require any variable selling and administrative expenses. The special order will not affect for plant has enough unused capacity to manufacture the additional vests Sparkle Cruisines has offered 56 per vest, which is below the normal sale price of $14. Read the requirements Per Unit (4.600 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 Requirement 2. Identify long-term factors Summer Fun should consider in deciding whether to accept the special sales order. Enter any number in the edit fields and then continue to the next question Type here to search BI 2 of 13 (2 complete This Summer Fun manufactures flotation vests in Philadelphia, Pennsylvania Summer Fun's contribution margin income statement for the most recent mooth contains the following data (Click the icon to view the cost information) Suppose Sparkle Cruiselines wishes to buy 4.600 vests from Summer Fun Acceptance of the order will not require any variable selling and administrative expenses. The special order will not affected plant has enough unused capacity to manufacture the additional vests Sparkle Cuisines has offered 56 per vest, which is below the normal sale price of 514 Read the requirements Increase (decrease in operating income from the special order Decision Requirement 2. Identily 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 wil Summer Fun's competitors react? Wil they retallate by cutting their prices and starting a price war? OB. Wal lowering the sale price tamish Summer Fun's image as a quality brand? OC. Will Summer Fun's other customers find out about the lower sale price Summer Fun accepted from Sparkle? If so, will these other customers demand lower sale prices? O D. All of the above O E None of the above Enter any number in the edit fields and then continue to the next question st #2 Time Remaining:00:44:17 Submit Test 16 pts 2 of 13 (2 complete) This Test: 100 pls possible Data Table -X for the most recent month contains the following data ufactur to view Cruisel anused ent We selling and administrative expenses. The special order will not affect foed expenses The Summer Fun elow the normal sale price of $14 e) in Requirements antity Summer Fun Contribution Margin Income Statement (Variable Costing) For Sales Volume of 33,000 Units Total Sales revenue $ 462,000 Less variable expenses Variable manufacturing costs (OM, DL. Variable MOH) 99 000 111000 Variable operating expenses (selling and administrative) Contribution margin 252.000 Less fixed expenses $ 122.000 Fired manufacturing overhead 93,000 Fixed operating expenses (selling and administrative) pwing mining 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 Timer the these of Print Done Fun ve above Print Done the 11:13 5/26/200