The Gold Plus Company manufactures windows. Its manufacturing plant has the capacity to produce 11,000 windows each month. Current production and sales are 10.000 windows per month. The company normally charges $250 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 Gold 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.) Without One-Time Only Special Order 10,000 Windows Data table More info Revenues Variable costs: Direct materials Direct manufacturing labor Variable costs that vary with number of units produced Direct materials $ 400,000 Direct manufacturing labor 350,000 Variable costs (for setups, materials handling, quality control, and so on) that vary with number of batches, 40 batches x $800 per batch 32,000 100,000 150,000 $ 1,032,000 Total costs Batch manufacturing costs Fixed costs: Fixed manufacturing costs Fixed marketing costs Total costs Operating income Fixed manufacturing costs Fixed marketing costs Print Done Gold Plus has just received a special one-time-only order for 1,000 windows at $200 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 250 windows (40 batches x 250 windows per batch = 10,000 windows). The special order requires Gold Plus to make the windows in 8 batches of 125 windows. Requirements Print Done 1. Should Gold Plus accept this special order? Show your calculations. 2. Suppose plant capacity were only 10,500 windows instead of 11,000 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. 3. As in requirement 1, assume that monthly capacity is 11,000 windows. Gold Plus is concerned that if it accepts the special order, its existing customers will immediately demand a price discount of $20 in the month in which the special order is being filled. They would argue that Gold Plus's 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. - x