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Drop downs are accept/ not accept and increases/ decreases. The Reward Plus Company manufactures windows. Its manufacturing plant has the capacity to produce 20,000 windows

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedDrop downs are accept/ not accept and increases/ decreases.

The Reward Plus Company manufactures windows. Its manufacturing plant has the capacity to produce 20,000 windows each month. Current production and sales are 15,000 windows per month. The company normally charges $150 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. Requirement 1. Should Reward 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 "O" in the appropriate cells of the Difference column.) i X Data Table i X More Info $ 300,000 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, 300 batches * $1,250 per batch Fixed manufacturing costs Reward Plus has just received a special one-time-only order for 5,000 windows at $125 per window. Accepting the special order would not affect the company's regular business or its fixed costs. Reward Plus makes windows for its existing customers in batch sizes of 50 windows (300 batches * 50 windows per batch = 15,000 windows). The special order requires Reward Plus to make the windows in 100 batches of 50 windows. 150,000 375,000 300,000 55,000 Print Done Fixed marketing costs $ 1,180,000 Total costs Without With One-Time Only One-Time Only Special Order Special Order Difference 15,000 Windows 20,000 Windows 5,000 Windows Revenues Variable costs: Direct materials Direct manufacturing labor Batch manufacturing costs Fixed costs: Fixed manufacturing costs Fixed marketing costs Total costs Operating income Based on the above calculations, Reward Plus should the one-time only special order if it has no long-term operating income implications because accepting the order v by Requirement 2. Suppose plant capacity were only 17,500 windows instead of 20,000 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. With One-Time Only Special Order Under Reduced Plant Capacity 17,500 Windows Revenues Variable costs: Direct materials With One-Time Only Special Order Under Reduced Plant Capacity 17,500 Windows Revenues Variable costs: Direct materials Direct manufacturing labor Batch manufacturing costs Fixed costs: Fixed manufacturing costs Fixed marketing costs Total costs Operating income Based on the calculations under this scenario, Reward Plus should the one-time only special order under the operating v income by reduced capacity because accepting the order Requirement 3. As in requirement 1, assume that monthly capacity is 20,000 windows. Reward Plus is concerned that if it accepts the special order, its existing customers will immediately demand a price discount of $15 in the month in which the special order is being filled. They would argue that Reward Plus's capacity costs are now being spread over more units and that existing customers should get the benefit of these lower costs. Should Reward 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 = = Reward Plus should the one-time-only special order under this scenario because accepting the order operating income

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