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You Have answer this question last year however I cannot find

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You Have answer this question last year however I cannot find it can you help It is from Managerial Accounting second edition braun,tietz, and harrison P8-47B


Deep blue manufactures floatation vests in Charleston, south





Resolved Question:



Deep blue manufactures floatation vests in Charleston, south Carolina. Deep blue’s contribution margin income statement for the most recent month contains the following………

Sales in units ….. 31000
Sales revenue….. $434000
Variable expenses:
Manuf

Muhammad Jawaad Ahmed :

Welcome to JA, it seems that data is missing or incomplete, please complete data so the answer may be given, thanks.

Customer:

Deep blue manufactures floatation vests in Charleston, south


Resolved Question:


Deep blue manufactures floatation vests in Charleston, south Carolina. Deep blue’s contribution margin income statement for the most recent month contains the following………

Sales in units ….. 31000
Sales revenue….. $434000
Variable expenses:
Manufacturing…………………………. 186000
Marketing and administrative….. 110000
Total variable expenses……………. 296000
Contribution margin….. ......................…...138000
Fixed expenses:
Manufacturing….. ……….130000
Marketing and administrative…..92000
Total fixed expenses……………….222000
Operating income (loss)…………...$84000
Suppose Boats - n – more wishes to buy 4600 vest from deep blue. Acceptance of the order will not increase deep blue’s variable marketing and administrative expenses. The deep blue has enough unused capacity to manufacture the additional vest. Boats-n-more has an offer of 5$ per vest, which is below the normal sale price of 14$.

Requirement
1. Prepare an increment analysis to determine whether or not deep blue should except the special sales order.
2. Identify long term factors deep blue should consider in deciding whether to accept the special sales order.

Hint from teacher:
Decrease in income is 4,600 and analyze variable per unit.

Customer:

I have to leave but will be back in 30 min.

Have a nice day

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