Coastal Safety manufactures flotation vests in Miami, Florida. Coastal Safety's contribution margin income statement for the most recent month contains the following data:

Suppose Dazzle Cruiselines wants to buy 4,600 vests from Coastal Safety. Acceptance of the order will not require any variable selling and administrative expenses. The special order will not affect fixed expenses. The Coastal Safety plant has enough unused capacity to manufacture the additional vests. Dazzle Cruiselines has offered $7 per vest, which is below the normal sale price of $15.
Requirements
1. Prepare an incremental analysis to determine whether Coastal Safety should accept this special sales order.
2. Identify long-term factors that Coastal Safety should consider in deciding whether to accept the special sales order

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Coastal Safety Contribution Margin Income Statement (Variable Costing) For Sales Volume of 32,000 Units Per unit $ 480,000 Sales revenue Less variable expenses: Variable manufacturing costs (DM, DL, Variable MOH) Variable operating expenses (selling and administrative) Contribution margin Less fixed expenses: Fixed manufacturing overhead Fixed operating expenses (selling and administrative) Operating income (loss) 160,000 112,000 208,000 126,000 91,000 (9,000)