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**** Please ignore the numbers (values) where red marks are indicated and use the data values provided above for this question. Thank you. 1 Data

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**** Please ignore the numbers (values) where red marks are indicated and use the data values provided above for this question. Thank you.

1 Data table Variable costs that vary with number of units produced Direct materials $ 400,000 350,000 32,000 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 100,000 150,000 $ 1,032,000 Total costs - X More info Gold 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. Gold 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 Gold Plus to make the windows in 8 batches of 125 windows. Requirement 1. Should Score One accept this special order? Show your calculations. Begin by completing an analysis, 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 columns. (Complete all input fields. For amounts with no change, make sure to enter "0" in the appropriate cells of the Difference column.) Without With One-Time Only One-Time Only Special Order Special Order Difference 15,000 Windows 20,000 Windows 5,000 Windows $ 2,250,000 $ 2,875,000 $ 625,000 Revenues Variable costs: Direct materials $ 300,000 $ 150,000 400,000 $ 200,000 100,000 50,000 Direct manufacturing labor Batch manufacturing costs 375,000 500,000 125,000 Fixed costs: Fixed manufacturing costs 100,000 0 100,000 55,000 55,000 0 Fixed marketing costs $ 980,000 $ 1,255,000 $ 275,000 Total costs 1 $ 1,270,000 $ 1,620,000 $ 350,000 Operating income Based on the above calculations, Score One should accept the one-time only special order if it has no long-term implications because accepting the order increases operating income by $ 350,000 Requirement 2. Suppose plant capacity were only 17,500 windows instead of 20,000 windows each month. The special order must either be taken in full or be rejected completely. Should Score One accept the special order? Show your calculations. Complete the analysis below to determine if Score One should accept the special order under this scenario. With One-Time Only Special Order Under Reduced Plant Capacity 17,500 Windows $ 2,500,000 Revenues Variable costs: Direct materials 350,000 175,000 Direct manufacturing labor Batch manufacturing costs 437,500 Fixed costs: Fixed manufacturing costs 100,000 55,000 Fixed marketing costs $ 1,117,500 Total costs $ 1,382,500 Operating income Based on the calculations under this scenario, Score One should accept reduced capacity because accepting the order increases operating income by the one-time only special order under the $ 112,500'. 1 Data table Variable costs that vary with number of units produced Direct materials $ 400,000 350,000 32,000 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 100,000 150,000 $ 1,032,000 Total costs - X More info Gold 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. Gold 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 Gold Plus to make the windows in 8 batches of 125 windows. Requirement 1. Should Score One accept this special order? Show your calculations. Begin by completing an analysis, 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 columns. (Complete all input fields. For amounts with no change, make sure to enter "0" in the appropriate cells of the Difference column.) Without With One-Time Only One-Time Only Special Order Special Order Difference 15,000 Windows 20,000 Windows 5,000 Windows $ 2,250,000 $ 2,875,000 $ 625,000 Revenues Variable costs: Direct materials $ 300,000 $ 150,000 400,000 $ 200,000 100,000 50,000 Direct manufacturing labor Batch manufacturing costs 375,000 500,000 125,000 Fixed costs: Fixed manufacturing costs 100,000 0 100,000 55,000 55,000 0 Fixed marketing costs $ 980,000 $ 1,255,000 $ 275,000 Total costs 1 $ 1,270,000 $ 1,620,000 $ 350,000 Operating income Based on the above calculations, Score One should accept the one-time only special order if it has no long-term implications because accepting the order increases operating income by $ 350,000 Requirement 2. Suppose plant capacity were only 17,500 windows instead of 20,000 windows each month. The special order must either be taken in full or be rejected completely. Should Score One accept the special order? Show your calculations. Complete the analysis below to determine if Score One should accept the special order under this scenario. With One-Time Only Special Order Under Reduced Plant Capacity 17,500 Windows $ 2,500,000 Revenues Variable costs: Direct materials 350,000 175,000 Direct manufacturing labor Batch manufacturing costs 437,500 Fixed costs: Fixed manufacturing costs 100,000 55,000 Fixed marketing costs $ 1,117,500 Total costs $ 1,382,500 Operating income Based on the calculations under this scenario, Score One should accept reduced capacity because accepting the order increases operating income by the one-time only special order under the $ 112,500

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