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0$15 rom The Medal Plus Company manufactures windows. Its manufacturing plant has the capacity to produce 6,000 windows each month. Current production and sales are
0$15 rom The Medal Plus Company manufactures windows. Its manufacturing plant has the capacity to produce 6,000 windows each month. Current production and sales are 5,000 windows per month. The company normally charges $200 per window. cost information for the current activity level is as follows: M (Click the icon to view the cost information.) A to view the special order information.) Data Table me without the special order. Next, calculate operating income Jolds. For amounts with no change, make sure to enter "o in 150,000 75,000 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, 200 batches * $1,000 per batch Fixed manufacturing costs Fixed marketing costs ced at 200.000 45,000 25,000 495,000 Total costs 0 More Info Medal Plus has just received a special one-time-only order for 1,000 windows at $175 per window. Accepting the special order would not affect the company's regular business or its fixed costs. Medal Plus makes windows for its existing customers in batch sizes of 25 windows (200 batches x 25 windows por batch = 5,000 windows). The special order requires Medal Plus to make the windows in 10 batches of 100 windows. xt question Print Done The Medal Plus Company manufactures windows. Its manufacturing plant has the capacity to produce 6,000 windows each month. Current production and sales are 5,000 windows per month. The company normally charges $200 per window. Cost Information for the current activity level is as follows: un click the icon to view the cost informal (Click the icon to view the special order information.) Read the requirements. Requirement 1. Should Medal Plus accept this special order? Show your calculations. Begin by completing an analysis, and start by showing the computation of the company's operating income without the special order. Next, calculate operating income with the special order, and then calculate the differences between the two columns. (Complete all input fields. For amounts with no change, make sure to enter "0" in the appropriate cells of the Difference column.) Without One-Time Only Special Order 5,000 Windows With One-Time Only Special Order 6,000 Windows Difference 1,000 Windows Revenues Variable costs: Direct materials Direct manufacturing labor Batch manufacturing costs Fixed costs: Fixed manufacturing costs Fixed marketing costs Total costs Choose from any list or enter any number in the input fields and then continue to the next question. The Medal Plus Company manufactures windows. Its manufacturing plant has the capacity to produce 6,000 windows each month. Current production and sales are 5,000 windows per month. The company normally charges $200 per window. Cost information for the current activity level is as follows: Click the icon to view the cost information.) (Click the icon to view the special order information.) Read the requirements TO COSES Based on the above calculations, Medal Plus should implications because accepting the order the one-time only special order if it has no long-term operating income by Requirement 2. Suppose plant capacity were only 5,500 windows instead of 6,000 windows each month. The special order must either be taken in ful or be rejected completely. Should Medal Plus accept the special order? Show your calculations. Complete the analysis below to determine if Medal Plus should accept the special order under this scenario. With One-Time Only Special Order Under Reduced Plant Capacity 5,500 Windows Revenues Variable costs: Direct materials Direct manufacturing labor Choose from any list or enter any number in the input fields and then continue to the next question $15 rom The Medal Plus Company manufactures windows. Its manufacturing plant has the capacity to produce 6,000 windows each month. Current production and sales are 5,000 windows per month. The company normally charges $200 per window. Cost information for the current activity level is as follows: Click the icon to view the cost information.) (Click the icon to view the special order information.) Read the requirements Fixed manufacturing costs Fixed marketing costs Total costs Operating income the one-time only special order under the Based on the calculations under this scenario, Medal Plus should reduced capacity because accepting the order operating income by ad ar Requirement 3. As in requirement 1, assume that monthly capacity is 6,000 windows. Medal Plus is concerned that if it accepts the special order, its existing customers will immediately demand a price discount of $5 in the month in which the special order is being filled. They would argue that Medal Plus's capacity costs are now being spread over more units and that existing customers should get the benefit of these lower costs. Should Medal Plus accept the special order under these conditions? Show your calculations. Select the labels and then enter the amounts to calculate the net effect on operating income from accepting the special order under this scenario. (Use a minus sign or parentheses to show a net decrease in operating income from accepting the special order. Abbreviations used: Operating income - Ol; Special order =SO.) Net increase (decrease) in Ol from accepting SO Medal Plus should the one-time-only special order under this scenario because accepting the order operating income. Choose from any list or enter any number in the input fields and then continue to the next
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