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The Good Job Company manufactures windows. Its manufacturing plant has the capacity to produce 12,000 windows each month. Current production and sales are 10,000
The Good Job Company manufactures windows. Its manufacturing plant has the capacity to produce 12,000 windows each month. Current production and sales are 10,000 windows per month. The company normally charges $300 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. - X Requirements ules is 1. Should Good Job accept this special order? Show your calculations. 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 Good Job accept the special order? Show your calculations. 3. As in requirement 1, assume that monthly capacity is 12,000 windows. Good Job 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 Good Job's capacity costs are now being spread over more units and that existing customers should get the benefit of these lower costs. Should Good Job accept the special order under these conditions? Show your calculations. ne without the special order. Next, calculate operating income olds. For amounts with no change, make sure to enter "0" in Print Done
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