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The Gold Plus Company manufactures windows. Its manufacturing plant has the capacity to produce 2 0 , 0 0 0 windows each month. Current production
The Gold Plus Company manufactures windows. Its manufacturing plant has the capacity to produce windows each month. Current production and sales are windows per month. The company normally charges $ per window.
Cost information for the current activity level is as follows:
Requir Variable costs that vary with number of units produced Gold Plus has just received a special onetimeonly order for windows at
$ 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 windows batches windows per batch
windows The special order requires Gold Plus to make the windows in
batches of windows. 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 in the
appropriate cells of the Difference column. Special Order
Windowsement Should Gold Plus accept this special order? Show your calculations.
Requirement Suppose plant capacity were only windows instead of 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.
Requirement As in requirement assume that monthly capacity is windows. Gold Plus is concerned that if it accepts the special order, its existing customers will immediately demand a price discount of $ in the month in which the special order is being filled. They would argue that Gold Pluss capacity costs are now being spread over more units and that existing customers should get the benefit of these lower costs. Should Gold Plus accept the special order under these conditions? Show your calculations.
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