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Summer Fun manufactures flotation vests in San Diego, California. 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 Overlook Cruiselines wants to buy 5,100 vests from Summer Fun. Acceptance of the order will not require any variable selling and administrative expenses. The special order will not affect fixed expenses. The Summer Fun plant has enough unused capacity to manufacture the additional vests. Overlook Cruiselines has offered $8 per vest, which is below the normal sale price of $14 Read the Requirement 1. Prepare an incremental analysis to determine whether Summer Fun 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.) Decision: Requirement 2. Identify 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: A. Will Summer Fun's other customers find out about the lower sale price Summer Fun accepted from Overlook? If so: will these other customers demand lower sale prices? B. Will lowering the sale price tarnish Summer Fun's image as a quality brand? c. How will Summer Fun's competitors react? Will they retaliate by cutting their prices and starting a price war? D. All of the above. E. None of the above. Data table

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