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Variable costs (vary with units produced): Direct materials S 399,000 Direct labour 490,200 Variable costs (vary with number of batches): 136,800* Setups, materials handling, quality control Fixed manufacturing costs 315,000 Fixed marketing costs 218,000 Total costs $ 1,559,000 "Costs of $136,800 are based on 190 batches at $720 per batch.1. Should What a Medal accept this special order? Explain briefly. 2. Suppose plant capacity was only 12,300 medals instead of 14,700 medals each month. The special order must either be taken in full or rejected totally. Should What a Medal accept the special order? 3. As in requirement 1, assume that monthly capacity is 14,700 medals. What a Medal is concerned that if it accepts the special order, its existing customers will immediately demand a price discount of $8 in the month in which the special order is being filled. They would argue that What a Medal's capacity costs are now being spread over more units and that existing customers should get the benefit of these lower costs. Should What a Medal accept the special order under these conditions?The What a Medal Company manufactures medals for winners of athletic events and other contests. Its manufacturing plant has the capacity to produce 14,700 medals each month; current production and sales are 11,400 medals per month. The company normally charges $195 per medal. Cost information for the current activity level is provided in the accompanying table. (Click the icon to view the cost information.) What a Medal has just received a special one-time-only order for 2,400 medals at $175 per medal. Accepting the special order would not affect the company's regular business. What a Medal makes medals for its existing customers in batch sizes of 60 medals (190 batches x 60 medals per batch = 11,400 medals). The special order requires What a Medal to make the medals in 20 batches of 120 each. Required Requirement 1. Should What a Medal accept this special order? Explain briefly. First calculate the operating income without the one-time special order, next calculate the operating income with the one-time special order, and then find the difference. (Round your answers to the nearest whole dollar. Use parentheses or a minus sign for negative amounts or operating losses. For differences that are $0, make sure to enter "0" in the appropriate cell.) Without special With special order order Difference (1) (2) (2) - (1) Sales Variable costs: Direct materials Direct manufacturing labour Batch variable costs Fixed costs: Fixed manufacturing costs Fixed marketing costs Total costs Operating incomeWhat a Medal accept the order because accepting the order the operating income by $. Requirement 2. Suppose plant capacity was only 12,300 medals instead of 14,700 medals each month. The special order must either be taken in full or rejected totally. Should What a Medal accept the special order? Calculate the operating income with the one-time special order and the reduced plant capacity. (Round your answers to the nearest whole dollar. Use parentheses or a minus sign for negative amounts or operating losses.) With special order Sales Variable costs: Direct materials Direct manufacturing labour Batch variable costs Fixed costs: Fixed manufacturing costs Fixed marketing costs Total costs Operating incomeComplete the sentence below. (Round your answer to the nearest whole dollar. Enter a positive amount only.) What a Medal accept the order because accepting the order the operating income by $]. Requirement 3. As in requirement 1, assume that monthly capacity is 14,700 medals. What a Medal is concerned that if it accepts the special order, its existing customers will immediately demand a price discount of $8 in the month in which the special order is being filled. They would argue that What a Medal's capacity costs are now being spread over more units and that existing customers should get the benefit of these lower costs. Should What a Medal accept the special order under these conditions? (Round your answers to the nearest whole dollar. Use parentheses or a minus sign for negative amounts or an operating loss.) Increase (decrease) in operating income with special order Operating income lost from existing customers Net operating income increase (decrease) on accepting special order Complete the sentence below. (Round your answer to the nearest whole dollar. Enter a positive amount only.) What a Medal accept the order under these conditions because accepting the order the operating income by $]