The Reward One Company manufactures windows. Its manufacturing plant has the capacity to Cost information for the current activity level is as follows: produce 12,000 windows each month. Current production and sales are 10,000 windows per month. (Click the icon to view the cost information.) The company normally charges $250 per window. (Click the icon to view the special order information.) Read the requirements. Requirement 1. Should Reward 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 "O" in the appropriate cells of the Difference column.) Without With One-Time Only One-Time Only Special Order Difference Special Order 12,000 Windows 10,000 Windows 2,000 Windows Revenues Variable costs: Direct materials Direct manufacturing labor Batch manufacturing costs Fixed costs: Variable costs that vary with number of units produced Direct materials $ 600,000 700,000 Direct manufacturing labor Variable costs (for setups, materials handling, quality control, and so on) that vary with number of batches, 100 batches * $1,500 per batch Fixed manufacturing costs 150,000 250,000 400,000 Fixed marketing costs $ 2,100,000 Total costs 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 company's 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. Fixed costs: Fixed manufacturing costs Fixed marketing costs Total costs Operating income Based on the above calculations, Reward One should implications because accepting the order the one-time only special order if it has no long-term operating income by Requirement 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 Reward One accept the special order? Show your calculations. Complete the analysis below to determine if Reward 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 Fixed manufacturing costs Fixed marketing costs Total costs Operating income the one-time only special order under the Based on the calculations under this scenario, Reward One should reduced capacity because accepting the order operating income by Requirement 3. As in requirement 1, assume that monthly capacity is 12,000 windows. Reward 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 Reward One's capacity costs are now being spread over more units and that existing customers should get the benefit of these lower costs. Should Reward 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 = Ol; Special order = SO.) Net increase (decrease) in Ol from accepting so Net increase (decrease) in Ol from accepting SO Reward One should the one-time-only special order under this scenario because accepting the order operating income