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Requirement one is completed I need help with the second requirement The Gold Plus Company manufactures windows. Its manufacturing plant has the capacity to produce
Requirement one is completed I need help with the second requirement
The Gold 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. 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 Gold Plus 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 10,000 Windows 11,000 Windows 1,000 Windows $ 2,500,000 $ 2,700,000 $ 200,000 Revenues Variable costs: Direct materials 400,000 $ 440,000 $ 40,000 350,000 385,000 35,000 Direct manufacturing labor Batch manufacturing costs 32,000 38,400 6,400 Fixed costs: Fixed manufacturing costs 75,000 75,000 0 150,000 150,000 0 Fixed marketing costs Total costs $ 1,007,000 $ 1,088,400 $ 81,400 $ 1,493,000 $ 1,611,600 118,600 Operating income Based on the above calculations, Gold Plus should implications because accepting the order increases accept the one-time only special order if it has no long-term operating income by $ 118,600 Data Table Variable costs that vary with number of units produced Direct materials $ 400,000 350,000 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 32,000 75,000 150,000 Fixed marketing costs $ 1,007,000 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 x 250 windows per batch = 10,000 windows). The special order requires Gold Plus to make the windows in 8 batches of 125 windows. S: ter nu nu Requirement 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 Gold Plus accept the special order? Show your calculations. Complete the analysis below to determine if Gold Plus should accept the special order under this scenario. With One-Time Only Special Order Under Reduced Plant Capacity 10,500 Windows Revenues Variable costs: Direct materials Direct manufacturing labor Batch manufacturing costs Fixed costs: Fixed manufacturing costs Fixed marketing costs Total costs Operating income
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