The Goal 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 month. The company normally charges $200 per window. Data table More info Without With Variable costs that vary with number of units produced One-Time Only Special Order Direct materials $ 150,000 Goal 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. Goal 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 Goal One to make the windows in 10 batches of 100 windows. One-Time Only Special Order 6,000 Windows 75,000 5,000 Windows 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 $ Revenues 1,000,000 Variable costs: 125,000 25,000 Requirements $ Direct materials 150,000 Fixed marketing costs $ 575,000 75,000 Total costs 200,000 Direct manufacturing labor Batch manufacturing costs Fixed costs: Fixed manufacturing costs 1. Should Goal 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 Goal One accept the special order? Show your calculations. 3. As in requirement 1, assume that monthly capacity is 6,000 windows. Goal 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 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. 125,000 25,000 Fixed marketing costs Total costs $ 575,000 $ 425,000 Operating income