The Medal One 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.

Data table

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 $800 per batch	32,000
Fixed manufacturing costs	75,000
Fixed marketing costs	150,000
Total costs	$1,007,000

More info Dialog content starts Medal One 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. Medal One makes windows for its existing customers in batch sizes of 250 windows (40 batches 250 windows per batch = 10,000windows). The special order requires Medal One to make the windows in 8 batches of 125 windows.

Requirement 1. Should Medal One 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
Revenues		$?
Variable costs:
	Direct materials	$?
	Direct manufacturing labor	?
	Batch manufacturing costs	?
Fixed costs:
	Fixed manufacturing costs	?
	Fixed marketing costs	?
Total costs		$?
Operating income		$?

With

One-Time Only

Special Order

11,000 Windows

$?

$?

?

?

?

?

$?

$?

Difference 2,000 Windows

$?

$?

?

?

?

?

$?

$?

Based on the above calculations, Score One should accept the one-time only special order if it has no long-term implications because accepting the order increase operating income by _______ .

Requirement 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 Score One accept the special order? Show your calculations. Complete the analysis below to determine if Score One should accept the special order under this scenario.

		With One-Time
		Only Special Order
		Under Reduced
		Plant Capacity
		11,000 Windows
Revenues		$?
Variable costs:
	Direct materials	$?
	Direct manufacturing labor	?
	Batch manufacturing costs	?
Fixed costs:
	Fixed manufacturing costs	?
	Fixed marketing costs	?
Total costs		$?
Operating income		$?

Requirement 3: As in requirement 1, assume that monthly capacity is 11,000 windows. Medal one 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 Medal One's capacity costs are now being spread over more units and that existing customers should get the benefit of these lower costs. Should Medal One accept the special order under these conditions? Show your calculations

Select the labels and then enter the amounts to calculate the net effect on operating income from accepting the special order under this scenario. (Use a minus sign or parentheses to show a net decrease in operating income from accepting the special order. Abbreviations used: Operating income = OI; Special order = SO.)

				Net increase (decrease)
Increase in OI from accepting SO	-	OI lost from existing customers	=	in OI from accepting SO
$?	-	$?	=	$?