requirement 2

The Reward Plus 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 normally charges $250 per window. 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 Total costs $400,000 350,000 32,000 125,000 150,000 1,057,000 Based on the above calculations, Reward Plus should implications because accepting the order the one-time only special order if it has no long-term operating income by Reward 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. Reward 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 Reward Plus to make the windows in 8 batches of 125 windows. your calculations. Complete the analysis below to determine if Reward Plus should accept the special order under this scenario. Requirements 1. Should Reward 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 Reward Plus accept the special order? Show your calculations. 3. As in requirement 1 , assume that monthly capacity is 11,000 windows. Reward 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 Reward Plus's capacity costs are now being spread over more units and that existing customers should get the benefit of these lower costs. Should Reward Plus accept the special order under these conditions? Show your calculations