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Do requirement 2. Requirement 2. Suppose plant capacity were only 5,500 windows instead of 6,000 windows each month. The special order must either be taken
Do requirement 2.
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 full or be rejected completely. Should Reward Plus accept the special order? Show your calculations. Complete the analysis below to determine if Reward Plus should accept the special order under this scenario.
The Reward Plus Company manufactures windows Its manufacturing plant has the capacty to produce 6,000 windows each month. Current producion Cost information for the current activity level is as follows: and sales are 5,000 winduws per month. The company normally charges $200 per window (Click the icon to view tha cost information.) (Click the icon to view the special order infarmation.) Read the requirements Requirement 1. Should Reward Plus accept this special order? Show your caiculations Bagin by completing an analysis, and start by showing the computation of the company's aperating income without the special arder. Next, calculate operating income with the special arder, and then calculate the ditferences between the twa columns. (Complete al arswer booxes. For amounts with no change, make sure to enter in the appropriate cells of the Dference column) Without with One-Time Only One-Time Only Special Order Special Order 5,00D Windows6,000 Windows Difference 1,000 Windows 1.175,000 Revenues ariable costs Direct materiss Direct manufacturing labor Batch manufacturing costs 150,000 $ 75,000 200,000 180,000 90,000 210,000 30,000 15,000 10,000 Fixed costs Foed manufacturing costs Fooed markeirg coets 100,000 25,000 100,000 25,000 805,000$ 3550,00O S 55,000 Total costs Operaiing income Based on the above calculations, Reward Plus shouldaccept the one-time only special order if it has na lang-term 120,000 impications becauee accepting the arder increases operating income by $ 120,000Step by Step Solution
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