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special order, activity - based costing. the reward one company manufactures windows. its manufacturing plant has the capacity to produce 1 2 , 0 0
special order, activitybased costing. the reward one company manufactures windows. its manufacturing plant has the capacity to produce windows each month. current production and sales are windows per month. the company normally charges $ per window. cost information for the current activity level is as follows:variable costs that vary with number of units produced direct materials $ direct manufacturing labor variable costs for setups, materials handling, quality control, and so on that vary with number of batches, batchestimes $ per batch fixed manufacturing costs fixed marketing costs total costs $reward one has just received a special onetimeonly order for windows at $ per window. accepting the special order would not affect the companys regular business or its fixed costs. reward one makes windows for its existing customers in batch sizes of windows batches times windows per batch windows the special order requires reward one to make the windows in batches of windows.should reward one accept this special order? show your calculations.suppose plant capacity were only windows instead of windows each month. the special order must either be taken in full or be rejected completely. should reward one accept the special order? show your calculations.as in requirement assume that monthly capacity is windows. reward one is concerned that if it accepts the special order, its existing customers will immediately demand a price discount of $ in the month in which the special order is being filled. they would argue that reward ones capacity costs are now being spread over more units and that existing customers should get the benefit of these lower costs. should reward one accept the special order under these conditions? show your calculations.
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