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Marine Supply manufactures flotation vests in Charlotte, North Carolina. Marine Supply's contribution margin income statement for the most recent month contains the following data:

Requirement 2. Identify long-term factors they should consider in deciding whether to accept the special sales order.

Marine Supply Contribution Margin Income Statement (Variable Costing) For Sales Volume of 29,000 Units Total Sales revenue 464,000 Less v ariable expenses: Variable manufacturing costs (DM, DL, Variable MOH) 87,000 109,000 Variable operating expenses (selling and administrative) Contribution margin 268,000 Less fixed expenses Fixed manufacturing overhead 123,000 86,000 Fixed operating expenses (selling and administrative) 59,000 Operating income (loss) Marine Supply manufactures flotation vests in Charlotte, North Carolina. Marine Supply's contribution margin income statement for the most recent month contains the following data: (Click the icon to view the cost information.) Suppose Boats n- More Cruiselines wants to buy 5,000 vests from Marine Supply. Acceptance of the order will not require any variable selling and administrative expenses. The special order will not affect fixed expenses. The Marine Supply plant has enough unused capacity to manufacture the additional vests. Boats -n More Cruiselines has offered $9 per vest, which is below the normal sale price of $16. Read the requirements Requirement 1. Prepare an incremental analysis to determine whether Marine Supply should accept this special sales order. (Enter a "o" for any zero balances. Use parentheses or a minus sign to indicate a negative contribution margin and/or a decrease in operating income from the special order.) Total Order Incremental Analysis of Special Sales Order Decision (5,000 units) Per Unit 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

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