Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The Gold Plus Company manufactures windows. Its manufacturing plant has the capacity to produce 20,000 windows each month. Cost information for the current activity level
The Gold Plus Company manufactures windows. Its manufacturing plant has the capacity to produce 20,000 windows each month. Cost information for the current activity level is as follows: Current production and sales are 15,000 windows per month. The company normally charges $150 per window. E Click the loon to viaw the cost information.) (Click the icon to view the special order information.) Read the requirements Requirement 1. Should Gold Plus accept this special crder? 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 dferences between the two columns. (Complete all answer boxes. For amounts with no change, make sure to enter "0* in the appropnate cells of the Difference column.) Without One-Time Only Special Order 15,000 Windows Data Table More Info Gold Plus has just received a special one-time-only order for 5,000 windows at $125 per window. Accapting the special order would not affect the company's regular business or its fxed costs. Gold Plus makes windows for its existing customers in batch sizes of 50 windows (300 batches x 50 windows per batch 15,000 windows). The special crder requires Gold Plus to make the windows in 100 batches of 50 windows. Revenues Varlable costs that vary with number of units produced Variable costs: $300,000 150,000 Direct materials Direct materials Direct manufacturing labor Batch manufacturing costs Direct manufacturing labor Varlable costs (for setups, materials handling, quality control, and so on) that vary with number of batches, 300 batches x $1,250 per batch Fixed manufacturing costs Fixed marketing costs Total costs 375,000 300,000 55,000 $1.180,000 Fixed costs Print Done Fixed manufacturing costs Fixed marketing costas Total costs Operating income Print Done Enter any number in the edit fields and then click Check
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started