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The Goad Jab Company manufactures windows. Its manufacturing plant has the capacity to produce 11,000 windows each month Current production and sales are 10,000 windows per month. The company rarmally charges $250 fier 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 Goad Jab accept this special order? Show your calculations. Begin by completing an analyss, 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 columne. (Complete all input fields. For amounts with no change, make sure to enter 'D' in the appropriate cells of the Difference column.) Without One-Time Only Special Order 10,000 Windows Revenues Variable costs: Direct materiale Direct manufacturing labor Batch manufacturing coats Fixed costs Fixed manufacturing costs Fixed marketing costs Total costs Operating income Data Table Requirements 400.000 350.000 Variable costs that vary with number of units produced Direct materials Direct manufacturing labor Variable costs (for setups, materials handling, quality control, and so on) that vary with number of batches, 40 batches * $800 per batch Fixed manufacturing costs Fixed marketing costs 32,000 200,000 150,000 1. Should Good Job 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 Good Job accept the special order? Show your calculations. 3. As in requirement 1, assume that monthly capacity is 11,000 windows. Good Job 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 Good Job's capacity costs are now being spread over more units and that existing customers should get the benefit of these lower costs. Should Good Job accept the special order under these conditions? Show your calculations. $ 1,132,000 Total costs Print Done Print Done - X More Info Good Job 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. Good Job 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 Good Job to make the windows in 8 batches of 125 windows Print Print Done
