Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Homework: 6-1 MyAccounting Lab Homework: Chapter 11 Question 1, E11-24 (similar to) Part 5 of 8 The Goal One Company manufactures windows. Its manufacturing

image text in transcribed

Homework: 6-1 MyAccounting Lab Homework: Chapter 11 Question 1, E11-24 (similar to) Part 5 of 8 The Goal One Company manufactures windows. Its manufacturing plant has the capacity to produce 11,000 windows each month. Current production and sales are 10,000 windows per month. The company normally charges $250 per window. Requirements HW Score: 4.2%, 1.89 of 45 points * Points: 1.89 of 5 Cost information for the current activity level is as follows: (Click the icon to view the cost information.) he special order information.) Complete the analysis below to determine if Goal One should Revenues Variable costs: Direct materials Direct manufacturing labor Batch manufacturing costs With One-Time Only Special Order Under Reduced Plant Capacity 10,500 Windows 1. Should Goal One accept this special order? Show your calculations. 2. Suppose plant capacity were only 10,500 windows instead of 11,000 windows each month. The special order must either be taken in full or be rejected completely. Should Goal One accept the special order? Show your calculations. 3. As in requirement 1, assume that monthly capacity is 11,000 windows. Goal One is concerned that if it accepts the special order, its existing customers will immediately demand a price discount of $20 in the month in which the special order is being filled. They would argue that Goal One's capacity costs are now being spread over more units and that existing customers should get the benefit of these lower costs. Should Goal One accept the special order under these conditions? Show your calculations. Print Done ta table 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) hat vary with number of batches, 40 batches x $800 per batch Fixed manufacturing costs Fixed marketing costs Total costs Md Fixed costs: Fixed manufacturing costs Fixed marketing costs Help me solve this Etext pages Goal One has just received a special one-time-only order for 1,000 windows at $200 per window. Accepting the special order would not affect the company's regular business or its fixed costs. Goal One makes windows for its existing customers in batch sizes of 250 windows (40 batches x 250 windows per batch = 10,000 windows). The special order requires Goal One to make the windows in 8 batches of 125 windows. Print Done Save $ 400,00 350,00 32,00 125,00 150,00 $ 1,057,00 Clear all Check answer

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Human Resource Management

Authors: John Bernardin

6th Edition

978-0078029165, 0078029163

More Books

Students also viewed these Accounting questions

Question

What are the purpose and components of a data warehouse? LO.1

Answered: 1 week ago

Question

What are the characteristics of data-mining systems? LO.1

Answered: 1 week ago