Question
The Reward One Company manufactures windows. Its manufacturing plant has the capacity to produce 12,000 windows each month. Current production and sales are 10,000 windows
The Reward One 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 $250 per window. Cost information for the current activity level is as follows: Reward One has just received a special one-time-only order for 2,000 windows at $225 per window. Accepting the special order would not affect the companys regular business or its fixed costs. Reward One makes windows for its existing customers in batch sizes of 100 windows (100 batches 100 windows per batch = 10,000 windows). The special order requires Reward One to make the windows in 25 batches of 80 windows. Required 1. Should Reward One accept this special order? Show your calculations.
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