The Goal One Company manufactures windows. Its manufacturing plant has the capacity to produce 12,000 windows each month. Cost information for the current activity level is as follow (Click the icon to view the cost information.) Current production and sales are 10,000 windows per month. The company normally charges $300 per window. (Click the icon to view the special order information. Read the requirements. Requirement 1. Should Goal One 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 fiolds. For amounts with no change, make sure to enter "0" in the appropriate cells of the Difference column.) 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 2. Suppose plant capacity were only 11,000 windows instead of 12,000 windows each month. The special order must either be taken in full or be rejected completely. Should Goal One accept the special order? Show your calculations, 3. As in requirement 1, assume that monthly capacity is 12,000 windows. Goal One is concerned that if it accepts the special order, its existing customers will immediately demand a price discount of $10 in the month in which the special order is being filled. They would argue that Goal One's capacity costs are now being spread over more units and that existing customers should get the benefit of these lower costs. Should Goal One accept the special order under these conditions? Show your calculations. The Goal One Company manufactures windows. Its manufacturing plant has the capacity to produce 12,000 windows each month. Cost information for the current activity level is as follow (Click the icon to view the cost information.) Current production and sales are 10,000 windows per month. The company normally charges $300 per window. (Click the icon to view the special order information. Read the requirements. Requirement 1. Should Goal One 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 fiolds. For amounts with no change, make sure to enter "0" in the appropriate cells of the Difference column.) 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 2. Suppose plant capacity were only 11,000 windows instead of 12,000 windows each month. The special order must either be taken in full or be rejected completely. Should Goal One accept the special order? Show your calculations, 3. As in requirement 1, assume that monthly capacity is 12,000 windows. Goal One is concerned that if it accepts the special order, its existing customers will immediately demand a price discount of $10 in the month in which the special order is being filled. They would argue that Goal One's capacity costs are now being spread over more units and that existing customers should get the benefit of these lower costs. Should Goal One accept the special order under these conditions? Show your calculations
