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I will give upvote if you give the right answer Cost information for the current activity level is as follows: 10,000 windows per month. The
I will give upvote if you give the right answer
Cost information for the current activity level is as follows: 10,000 windows per month. The company normally charges $300 per window. (Click the icon to view the cost information.) (Click the icon to view the special order information.) Read the requirements. Data table More info Award One has just received a special one-time-only order for 2,000 windows at $250 per window. Accepting the special order would not affect the company's regular business or its fixed costs. Award One makes windows for its existing customers in batch sizes of 50 windows ( 200 batches 50 windows per batch = 10,000 windows). The special order requires Award One to make the windows in 40 batches of 50 windows. Requirements 1. Should Award One accept this special order? Show your calculations. 2. Suppose plant capacity were only 11,000 windows instead of 12,000 windows each month. The special order must either be taken in full or be rejected completely. Should Award One accept the special order? Show your calculations. 3. As in requirement 1 , assume that monthly capacity is 12,000 windows. Award One is concerned that if it accepts the special order, its existing customers will immediately demand a price discount of $10 in the month in which the special order is being filled. They would argue that Award One's capacity costs are now being spread over more units and that existing customers should get the benefit of these lower costs. Should Award One accept the special order under these conditions? Show your calculations. Cost information for the current activity level is as follows: 10,000 windows per month. The company normally charges $300 per window. (Click the icon to view the cost information.) (Click the icon to view the special order information.) Read the requirements. Data table More info Award One has just received a special one-time-only order for 2,000 windows at $250 per window. Accepting the special order would not affect the company's regular business or its fixed costs. Award One makes windows for its existing customers in batch sizes of 50 windows ( 200 batches 50 windows per batch = 10,000 windows). The special order requires Award One to make the windows in 40 batches of 50 windows. Requirements 1. Should Award One accept this special order? Show your calculations. 2. Suppose plant capacity were only 11,000 windows instead of 12,000 windows each month. The special order must either be taken in full or be rejected completely. Should Award One accept the special order? Show your calculations. 3. As in requirement 1 , assume that monthly capacity is 12,000 windows. Award One is concerned that if it accepts the special order, its existing customers will immediately demand a price discount of $10 in the month in which the special order is being filled. They would argue that Award One's capacity costs are now being spread over more units and that existing customers should get the benefit of these lower costs. Should Award One accept the special order under these conditions? Show your calculationsStep by Step Solution
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