Safe sailingsafe sailing

manufactures flotation vests in

charleston comma south carolinacharleston, south carolina.

safe sailing'ssafe sailing's

contribution margin income statement for the most recent month contains the following data:



(click the icon to view the cost information.)

suppose

summer sportssummer sports

cruiselines wants to buy

4 comma 6004,600

vests from

safe sailingsafe sailing.

acceptance of the order will not increase

safe sailing'ssafe sailing's

variable marketing and administrative expenses or any of its fixed expenses. the

safe sailingsafe sailing

plant has enough unused capacity to manufacture the additional vests.

summer sportssummer sports

cruiselines has offered

$ 6$6

per vest, which is below the normal sale price of

$ 14$14.