The Award Plus 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 month. The company normally charges $200 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 Award 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.) E11-24 (similar to) x Help More Info Data Table Variable costs that vary with number of units produced Award Plus 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 Plus 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 Plus to make the windows in 10 batches of 100 windows. Direct materials $ 150,000 75,000 Julat 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 200,000 W e Print Done 45,000 25,000 Fixed marketing costs $ 495,000 Total costs i Requirements 1. Should Award Plus 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 Plus accept the special order? Show your calculations. 3. As in requirement 1, assume that monthly capacity is 6,000 windows. Award Plus 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 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. Without One-Time Only Special Order 5,000 Windows Revenues Variable costs: Direct materials Direct manufacturing labor Direct materials Direct manufacturing labor Batch manufacturing costs Fixed costs: Fixed manufacturing costs Fixed marketing costs Total costs Operating income