The Medal Plus Company manufactures medals for winners of athletic events and other contests. Its manufacturing plant has the capacity to produce 12.000 medals each month. Current production and sales are 10,000 medals per month. The company normally charges $300 per medal. Cost information for the current activity level is as follows: (Click the icon to view the cost information.) Medal Plus has just received a special one-time-only special order for 2,000 medals at $250 per medal. Accepting the special order would not affect the company's regular business. Medal Plus makes medals for its existing customers in batch sizes of 50 medals (200 batches x 50 medals per batch = 10,000 medals). The special order requires Medal Plus to make the medals in 40 batches of 50 each. Read the requirements. 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. (For amounts with no change, make sure to enter "0" in the appropriate cells of the Difference column.) Without With One-Time Only One-Time Only Difference Special Order Special Order 2,000 Units 10,000 Units 12.000 Units $ 500.000 $ 3,000,000 $ Revenues 3,500,000 Variable costs: 120,000 Direct materials 600.000 S 720,000 90,000 Direct manufacturing labor 450.000 540,000 60.000 Batch manufacturing costs 300.000 360,000 Fixed costs: 0 Fixed manufacturing costs 250,000 250,000 0 50,000 270.000 Fixed marketing costs Total costs $ 1,650,000 $ 1,920,000 $ 230.000 $ 1,350,000 $ 1,500,000 Operating income 50.000 $ Based on the above calculations, Medal Plus should accept the one-time-only special order if it has no long-term implications because accepting the order increases operating income by $ 230,000 . Requirement 2. Suppose plant capacity were only 11,000 medals instead of 12,000 medals each month. Medal Plus must accept or reject the special order in full. Should Medal Plus accept the special order? Show your calculations. Complete the analysis below to determine if Medal Plus should accept the special order under this scenario. With One-Time Only Special Order Under Reduced Plant Capacity 11,000 Units $ 3,200,000 Revenues Variable costs: Direct materials 660,000 495,000 Direct manufacturing labor Batch manufacturing costs 330,000 Fixed costs: Fixed manufacturing costs 250,000 The Medal Plus Company manufactures medals for winners of athletic events and other contests. s manufacturing plant has the capacity to produce 12,000 medals each month. Current production and sales are 10,000 medals per month. The company normally charges $300 per medal. Cost information for the current activity level is as follows: (Click the icon to view the cost information.) Medal Plus has just received a special one-time-only special order for 2,000 medals at $250 per medal. Accepting the special order would not affect the company's regular business. Medal Plus makes medals for its existing customers in batch sizes of 50 medals (200 batches x 50 medals per batch = 10,000 medals). The special order requires Medal Plus to make the medals in 40 batches of 50 each. Read the requirements. 330,000 Batch manufacturing costs Fixed costs: Fixed manufacturing costs Fixed marketing costs 250,000 50,000 Total costs 1,785,000 S 1,415,000 Operating income Based on the calculations under this scenario, Medal Plus should accept the one-time-only special order under the reduced capacity because accepting the order increases operating income by $ 65,000 Requirement 3. As in requirement 1, assume that monthly capacity is 12,000 medals. Medal 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. Existing customers would argue that Medal Plus's capacity costs are now being spread over more units and that they should get the benefit of these lower costs. Should Medal Plus 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 - Ol; Special order = so.) Net increase (decrease) Increase in Ol from accepting So Decrease in Ol from accepting SO in Ol from accepting SO 1 The Medal Plus Company manufactures medals for winners of athletic events and other contests. Its manufacturing plant has the capacity to produce 12,000 medals each month. Current production and sales are 10,000 medals per month. The company normally charges $300 per medal. Cost information for the current activity level is as follows: (Click the icon to view the cost information.) Medal Plus has just received a special one-time-only special order for 2,000 medals at $250 per medal. Accepting the special order would not affect the company's regular business. Medal Plus makes medals for its existing customers in batch sizes of 50 medals (200 batches x 50 medals per batch = 10,000 medals). The special order requires Medal Plus to make the medals in 40 batches of 50 each. Read the regu i Data Table Requirements Batch man Fixed costs: Fixed many 1. Should Medal Plus accept this special order? Show your calculations. Variable costs that vary with number of units produced Fixed mark 2. Suppose plant capacity were only 11,000 medals instead of 12,000 medals Direct materials $ 600.000 each month. Medal Plus must accept or reject the special order in full. Should Total costs Direct manufacturing labor 450.000 Medal Plus accept the special order? Show your calculations. 3. As in requirement 1, assume that monthly capacity is 12,000 medals. Operating inod Variable costs (for setups, materials handling, quality control, etc.) Medal Plus is concerned that if it accepts the special order, its existing that vary with number of batches, 200 batches x $1,500 per batch 300,000 customers will immediately demand a price discount of $20 in the month in Based on the reduced which the special order is being filled. Existing customers would argue that Fixed manufacturing costs 250,000 Medal Plus's capacity costs are now being spread over more units and that Requirement: 50.000 accepts th they should get the benefit of these lower costs. Should Medal Plus accept month in which the special order is Fixed marketing costs more unit the special order under these conditions? Show your calculations. Hal order under these conditior $ Total costs 1,650.000 Select the labe rder under from accepting the special order. Print Done Print Done Increase in or from accepting so Decrease in Oltrom accepting so = in Ol from accepting So