Maritime manufactures flotation vests in Charleston, South Carolina. Maritime\'s

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Maritime manufactures flotation vests in Charleston, South Carolina. Maritime'sSuppose Overboard wishes to buy 4,200 vests from Maritime. Maritime will not contribution margin income statement for the month ended January 31, 2018, incur any variable selling and administrative expenses on the special order. The contains the following data: (Click the icon to view the cost information.) Maritime plant has enough unused capacity to manufacture the additional vests Overboard has offered $8 per vest, which is below the normal sales price of $14. Read the requirements in operating income Decision: Requirement 3. Identify long-term factors Maritime should consider in deciding whether to accept the special sales order. In addition to determining the special order's effect on operating profits, Maritime's managers also should consider the following: 0 A. Will Maritime's other customers find out about the lower sale price Maritime accepted from Overboard? If so, will these other customers demand lower sale prices? B. Will the special order customer come back again and again, asking for the same reduced price? O C. How will Maritime's competitors react? Will they retaliate by cutting their prices and starting a price war? All of the above None of the above D. E. Choose from any list or enter any number in the input fields and then continue to the next question

Explanation / Answer

ans)

3) option (D) All of the above

They should consider all the above factors before taking a decision

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