Homework: 6-1 MyAccountingLab Homework: Chapter 11 Score: 3.11 of 5 pts 1 of 9 (1 complete) HW Score: 6.91%, 3.11 % E11-24 (similar to) Question The Medal 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 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 answer boxes. For amounts with no change, make sure to enter "0" in the appropriate cells of the Difference column.) Without With One-Time Only One-Time Only Special Order Special Order Difference 15,000 Windows 20,000 Windows 5,000 Windows $ 2,250,000 $ 2,875,000 $ 625,000 Revenues Variable costs: Direct materials 300,000 $ 150,000 375,000 400,000 $ 200,000 500,000 100,000 50,000 125,000 Direct manufacturing labor Batch manufacturing costs Fixed costs: Fixed manufacturing costs 15,000 cc non 15,000 Cc non Choon from ouliotorontar n umber in this field and than liale boel, Anuar The Medal 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: E: (Click the icon to view the cost information.) (Click the icon to view the special order information.) Read the requirements 15.000 Windows 20,000 Windows 5,000 Windows $ 2,250,000 $ 2,875,000 $ 625,000 Revenues Variable costs: Direct materials Direct manufacturing labor Batch manufacturing costs Fixed costs: Fixed manufacturing costs 300,000 $ 150,000 375,000 400,000 $ 200,000 500,000 100,000 50,000 125,000 15,000 55,000 15,000 55,000 0 Fixed marketing costs Total costs $ 895,000 $ 1,355,000 $ 1,170,000 $ 1,705,000 $ 275,000 350,000 $ Operating income Based on the above calculations, Medal Plus should implications because accepting the order increases accept the one-time only special order if it has no long-term operating income by $ 350,000 The Medal 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.) A (Click the icon to view the special order information.) Read the requirements. Complete the analysis below to ueterre Il vieual Plus Siouiu accept the special order under LITIS Scenano. With One-Time Only Special Order Under Reduced Plant Capacity 17,500 Windows 2,500,000 Revenues Variable costs: Direct materials Direct manufacturing labor Batch manufacturing costs Fixed costs: 350,000 175,000 437,500 Fixed manufacturing costs 15,000 Fixed marketing costs 55,000 1,032,500 Total costs The Medal 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.) A (Click the icon to view the special order information.) Read the requirements. | 1IN . Fixed manufacturing costs 15,000 55,000 Fixed marketing costs Total costs $ 1,032,500 1,467,500 Operating income Based on the calculations under this scenario, Medal Plus should accept reduced capacity because accepting the order increases operating income by $ the one-time only special order under the 112,500 Requirement 3. As in requirement 1, assume that monthly capacity is 20,000 windows. Medal 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 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 Homework: 6-1 MyAccountingLab Homework: Chapter 11 Score: 3.11 of 5 pts 1 of 9 (1 complete) HW Score: 6.91%, 3.11 % E11-24 (similar to) Question The Medal 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 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 answer boxes. For amounts with no change, make sure to enter "0" in the appropriate cells of the Difference column.) Without With One-Time Only One-Time Only Special Order Special Order Difference 15,000 Windows 20,000 Windows 5,000 Windows $ 2,250,000 $ 2,875,000 $ 625,000 Revenues Variable costs: Direct materials 300,000 $ 150,000 375,000 400,000 $ 200,000 500,000 100,000 50,000 125,000 Direct manufacturing labor Batch manufacturing costs Fixed costs: Fixed manufacturing costs 15,000 cc non 15,000 Cc non Choon from ouliotorontar n umber in this field and than liale boel, Anuar The Medal 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: E: (Click the icon to view the cost information.) (Click the icon to view the special order information.) Read the requirements 15.000 Windows 20,000 Windows 5,000 Windows $ 2,250,000 $ 2,875,000 $ 625,000 Revenues Variable costs: Direct materials Direct manufacturing labor Batch manufacturing costs Fixed costs: Fixed manufacturing costs 300,000 $ 150,000 375,000 400,000 $ 200,000 500,000 100,000 50,000 125,000 15,000 55,000 15,000 55,000 0 Fixed marketing costs Total costs $ 895,000 $ 1,355,000 $ 1,170,000 $ 1,705,000 $ 275,000 350,000 $ Operating income Based on the above calculations, Medal Plus should implications because accepting the order increases accept the one-time only special order if it has no long-term operating income by $ 350,000 The Medal 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.) A (Click the icon to view the special order information.) Read the requirements. Complete the analysis below to ueterre Il vieual Plus Siouiu accept the special order under LITIS Scenano. With One-Time Only Special Order Under Reduced Plant Capacity 17,500 Windows 2,500,000 Revenues Variable costs: Direct materials Direct manufacturing labor Batch manufacturing costs Fixed costs: 350,000 175,000 437,500 Fixed manufacturing costs 15,000 Fixed marketing costs 55,000 1,032,500 Total costs The Medal 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.) A (Click the icon to view the special order information.) Read the requirements. | 1IN . Fixed manufacturing costs 15,000 55,000 Fixed marketing costs Total costs $ 1,032,500 1,467,500 Operating income Based on the calculations under this scenario, Medal Plus should accept reduced capacity because accepting the order increases operating income by $ the one-time only special order under the 112,500 Requirement 3. As in requirement 1, assume that monthly capacity is 20,000 windows. Medal 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 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