Answer Happy

Deep Sea manufactures flotation vests in Charleston, South Carolina Deep Sea's contribution margin income statement for the month ended October 31, 2024, contains the following dat (Cick the icon to view the cost information) Read the requirements Requirement 1, identify each cost in the income statement as either relevant or irelevant to Deep Sea's decision Variable Manufacturing Costs Variable Selling and Administrative Costs Fixed Manufacturing Costs Fixed Selling and Administrative Costs Suppose Rater wishes to buy 4.500 vests from Deep Sea Deep Sea will not incur any variable seling and administrative expenses on the special order The Deep Sea plant has enough unused capacity to manufacture the additional vests Rather has offered 58 par vest, which is below the normal sales price of $18. irrelevant imrelevant in operating income Requirement 2. Prepare a differential analysis to determine whether Deep Sea should accept this special sales order. (Enter decreases to revenue or increases costs with a parentheses or minus sign

ifrelevant Requirement 2. Prepare a differential analysis to determine whether Deep Sea should accept this special sales order. (Enter decreases to revenue or increases to costs with a parentheses or minus sign.) Expected decrease in fixed manufacturing costs Expected decrease in selling and administrative costs Expected decrease in variable manufacturing costs Expected increase in fixed manufacturing costs Expected increase in selling and administrative costs Expected increase in variable manufacturing costs

in ope Requirements Identify each cost in the income statement as either relevant or irrelevant to Deep Sea's decision. 1. 2. Prepare a differential analysis to determine whether Deep Sea should accept this special sales order. 3. Identify long-term factors Deep Sea should consider in deciding whether to accept the special sales order. Print <-X Done

Data table Deep Sea Income Statement For the Month Ended October 31, 2024 Sales in Units Net Sales Revenue Variable Costs: Manufacturing Selling and Administrative Total Variable Costs Contribution Margin Foxed Costs Manufacturing Selling and Administrative Total Fixed Costs Operating Income Print Done $ 33.000 594,000 99,000 104,000 203,000 391,000 125,000 90,000 215,000 176,000 - X