The Award One Company manufactures windows. Its manufacturing plant has the capacity to produce 6.000 windows each month. Current production and sales are 5,000 windows per irrilhi. The company narrally charges $200 per window. Cost Information for the ourrent activity levels as follows: (Cick the icon to view the cost information.) Click the icon to view the special order information. Read the requiremente Requirement 1. Should Award One accept this special order? Show your calculations. Bagin 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 differencas between the two columns (Complete all input fields For amounts with no change, make sure to enter 'D' in the appropriate cells of the Difference column.) without With One-Time Only One-Time Only Special Order Special Order Difference 5,000 Windows 6,000 Windows 1,000 Windows Revenues Variable costs III III Direct materials Direct manufacturing labor Batch manufacturing costs Fixed costs: Fixed manufacturing costs Fixed marketing costs Total costs Operating income Based on the above calculations, Award One should Implications because accepting the order the one-time only special order if it has no long-term operating income by Requirement 2. Suppose plant capacity were only 5.500 windows instead of 6,000 windows each month. The special order mus: either be taken in full or be rejected comaletely, Staud Award One accept the special order? Show your calculations Complete the analysis below to determine if Award One should accept the special order under this scenario. With One-Time Only Special Order Under Reduced Plant Capacity 5,500 Windows Revenu Variable costs Direcl malerials Direct manufacturing labor Batch manufacturing costs Fixed costs: Fixed manufacturing costs Fixed marketing costs Total costa Operating income the one-time only special order under the Based on the calculalions under this scenario, Award One should reduced capacity because accepting the order | operating income by Requirement 3. As in requirement 1, assume that monthly capacity is 6,000 windows. Award One is concerned that if it accepts the special order, its existing customers will immediately demand a price discount of $5 in the month in which the special order is being filled. They would argue that Award One's capacity costs are now being spread over more units and that existing customers should get the benefit of these lower costs. Should Award One accept the special order under these conditions? Show your calculations. Select the labels and then enter the amounts to calculate the net effect on operating income from accepting the special order under this scenario. (Use a minus sign or parentheses to show a net decrease in operating income from accepting the special order. Abbreviations used: Operating income = Ol; Special order = SO.) = Net increase (decrease) = in Ol from accepting so Award One should the one-time-only special order under this scenario because accepting the order operating income. - Data table Cancel More info Variable costs that vary with number of units produced $ 150,000 75,000 Direct materials Direct manufacturing labor Variable costs (for setups, materials handling, quality control, and so on) that vary with number of batches, 200 batches * $1,000 per batch Fixed manufacturing costs Award One has just received a special one-time-only order for 1,000 windows at $175 per window. Accepting the special order would not affect the company's regular business or its fixed costs. Award One makes windows for its existing customers in batch sizes of 25 windows (200 batches * 25 windows per batch 5,000 windows). The special order requires Award One to make the windows in 10 batches of 100 windows. 200,000 75,000 25,000 Fixed marketing costs $ 525,000 Total costs Print Done Requirements 1. Should Award One accept this special order? Show your calculations. 2. Suppose plant capacity were only 5,500 windows instead of 6,000 windows each month. The special order must either be taken in full or be rejected completely. Should Award One accept the special order? Show your calculations. 3. As in requirement 1, assume that monthly capacity is 6,000 windows. Award One is concerned that if it accepts the special order, its existing customers will immediately demand price discount of $5 in the month in which the special order is being filled. They would argue that Award One's capacity costs are now being spread over more units and that existing customers should get the benefit of these lower costs. Should Award One accept the special order under these conditions? Show your calculations