Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

More Info -X Reward One has just received a special one-time-only order for 2,000 windows at $225 per window. Accepting the special order would not

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
More Info -X Reward One has just received a special one-time-only order for 2,000 windows at $225 per window. Accepting the special order would not affect the company's regular business or its fixed costs. Reward One makes windows for its existing customers in batch sizes of 100 windows (100 batches x 100 windows per batch = 10,000 windows). The special order requires Reward One to make the windows in 25 batches of 80 windows. Print Done Variable costs that vary with number of units produced Direct materials 600,000 Direct manufacturing labor 700,000 Variable costs (for setups, materials handling, quality control, and so on) that vary with number of batches, 100 batches * $1,500 per batch 150,000 Fixed manufacturing costs 250,000 400,000 Fixed marketing costs $ 2,100,000 Total costs Print Done Requiremem 1. Showard coept this special order? Show your callations Begin by completing an analysis and start by showing the computation of the company's operating income without the special onder Next, calculate operating income with the special order, and then we the Herences between the two columns Complete all inputs For one with no change, make sure to enter in the appropriate cells of the Director) Without With One Only One-Time Only Special Order Special Order Difference 10.000 Windows 12,000 Windows 2,000 Wadows Revenues Variable costs Direct materials Direct mandaturing labor Baich mancing Fed manufacturing costs Fixed mangos Opera income Choose from any or enter any number in the input fields and then continue to the nexestion mocations because compting the order operating income by Requirement 2. Suppose plant capacity were only 11.000 windows instead of 12,000 windows each month. The special order must the beskin tull or be rejected com Should Reward One accept the special order? Show your calon Complete the analysis below to determine Reward One should accept the special order under this scena With One Time Only Special Order Under Reduced Plant Capacity 11.000 Windows Rev Direct materials Direct mancing labor Bachmancturing costs Chooster enter any number in the input selds and then continue to the next cuestion 2 Fixed manufacturing costs Fixed marketing costs Total Operating hoome Based on the calculations under this scenario Twardone who the one-timental de under the educed city because accepting the order Operating comety Requirements in tormentassume that most is 12.000 wowowane is concerned that persey demanda de 520 in the month in which the species enged. They would argue ww Odiscapacity to rent pread over more and the stress of resowe courthoud uward One the counter the conditions how you can Select the land in the amounts to calculate the effect on corto come from accepting the special orders are stored in income to acceping the social der Abone Olcome O Social order) Nelser in 10 Red One should there are only special order under this concepting the order operating income Choose from any list or any on the input sends and then continue to the next

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

How To Audit The Process Based QMS

Authors: Dennis R. Arter, Charles A. Cianfrani, Jack West

1st Edition

0873895770, 978-0873895774

More Books

Students also viewed these Accounting questions

Question

Evaluate the importance of diversity in the workforce.

Answered: 1 week ago

Question

Identify the legal standards of the recruitment process.

Answered: 1 week ago