> Problems Group A Learning Objectives 1,2 p25-21A Identifying relevant information and making pricing decisions Sea Blue manufactures flotation vests in Charleston, South Carolina. Sea Blue's contribution margin income statement for the month ended December 31, 2018, contains the following data: 2. 555,200 SEA BEU Income Statement For the Month Ended December 31, 2018 32,000 $ 608,000 Sales in Units Net Sales Revenue Variable Costs: 96,000 108,000 204,000 404,000 Manufacturing Selling and Administrative Total Variable Costs Contribution Margin Fixed Costs: 124,000 94,000 218,000 $186,000 Manufacturing Selling and Administrative Total Fixed Costs Operating Income Suppose Overboard wishes to buy 4,600 vests from Sea Blue. Sea Blue will not incur any variable selling and administrative expenses on the special order. The Sea Blue plant has enough unused capacity to manufacture the additional vests. Overboard has offered $15 per vest, which is below the normal sales price of $19. Requirements 1. Identi fy each cost in the income statement as cither relevant or irrelevant to Sea Blue's decision 2. Prepare a differential analysis to determine whether Sea Blue should accept this special sales order 3. Identify long-term factors Sea Blue should consider in deciding whether to accept the special sales order