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PLEASE OPEN IMAGE AND ANSWER THE QUESTIONS month. Current production and sales are 1 0 , 0 0 0 windows per month. The company normally
PLEASE OPEN IMAGE AND ANSWER THE QUESTIONS month. Current production and sales are windows per month. The company normally charges $ per window,
Click the icon to view the cost information.
Click the icon to view the special order information.
Read the requirements.
Requirement Should Award Plus accept this special order? Show your calculations.
Complete all input fields. For amounts with no change, make sure to enter in the appropriate cells of the Difference column.
Without
OneTime Only
Special Order
Windows
Revenues
Variable costs:
Direct materials
Direct manufacturing labor
Batch manufacturing costs
Fixed costs:
Fixed manufacturing costs
Fixed marketing costs
Total costs
Operating income
Data table
Requirements
Should Award Plus accept this special order? Show your calculations.
Suppose plant capacity were only windows instead of 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.
As in requirement assume that monthly capacity is windows.
Award Plus is concerned that if it accepts the special order, its existing
customers will immediately demand a price discount of $ 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.
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