Deep Sea Income Statement For the Month Ended May 31, 2024 Sales in Units 30,000 Net Sales Revenue $ 510,000 Variable Costs: Manufacturing 90.000 Selling and Administrative 104,000 Total Variable Costs 194,000 316,000 Contribution Margin Fixed Costs: Manufacturing w 129.000 91,000 Selling and Administrative Total Fixed Costs 220,000 $ 96,000 Operating Income Deep Sea manufactures flotation vests in Charleston, South Carolina Deep Sea's contribution margin income statement for the month ended May 31, 2024 contains the following data (Click the icon to view the cost information) Read the requirements Suppose Overtown wishes to buy 4.400 vests from Deep Sea Deep Sea will not incur any variable selling and administrative expenses on the special order The Deep Sea plant has enough unused capacity to manufacture the additional vests Overtown has offered 510 per vest, which is below the normal sales price of $17 Requirement 1. Identify each cost in the income statement as either relevant or irrelevant to Deep Sea'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 Sea should accept this special sales order. (Enter decreases to revenue or Increases to couts with a parentheses or minus sign) in operating income Decision Requirement 3. Identify long term factors Deep Sea should consider in deciding whether to accept the special sales order In addition to determining the special order's effect on operating profits, Dhoop Sea's managers atoo should consider the following O A. Wil Deep Sea's other customers find out about the lower sale price Deep Sua accepted from Overtown? If so, will these other customers demand lower sale prices? OB. How will Deep Sea's competitors react? Will they retaliate by cutting their prices and starting a price war? OC. Win the special order customer come back again and again, asking for the same reduced prico? OD. All of the above OE None of the above