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please complete requirment part 1,2,3 More info Award Plus has just received a special one-time-only order for 1,000 windows at $200 per window. Accepting the
please complete requirment part 1,2,3
More info Award Plus 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. Award Plus makes windows for its existing customers in batch sizes of 250 windows (40 batches 250 windows per batch = 10,000 windows). The special order requires Award Plus to make the windows in 8 batches of 125 windows Data table 1. Should Award Plus 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 Award Plus accept the special order? Show your calculations. 3. As in requirement 1 , assume that monthly capacity is 11,000 windows. Award Plus 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 Award Plus's capacity costs are now being spread over more units and that existing customers should get the benefit of these lower costs. Should Award Plus accept the special order under these conditions? Show your calculations. The Award Plus Comqany manutactures wndows. its mandacturing plant has the capacity to produce 11,000 windows each month. Current production and sales are 10,000 windows Cost intormation for the current activly levet is as fotlows per month The company normally charges $250 per window (Cuck the icon fo verw the cosi informaton) (Cick the icon to view the specaif onter information ) Read the ieguicemints Requirement 1. Should Award Plus accept this special otder? Show your caiciatabons Begin by completing an analysis. and start by showing the computation of the company's operating income without the special order Next, caxcuate operaning incame with ine specal order, and then cakculate the differences between the two columns. (Compete at input fields For amounts with no change. maxe sure to entier . in the apericprate ceds of the Difterence columni) Step by Step Solution
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