: 1 point(s) possible Submit test The Medal One Company manufactures windows. Its manufacturing plant has the capacity to produce 20,000 windows each month. Current production and sales are 15,000 windows per month. The company normally charges $150 per window. Cost information for the current activity level is as follows: FFA (Click the icon to view the cost information.) 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 With One-Time Only One-Time Only Special Order Special Order Difference 15,000 Windows X 20,000 Windows 5,000 Windows Data table Revenues 2,250,000 Variable costs Direct materials 300,000 Variable costs that vary with number of units produced Direct materials 300,000 Direct manufacturing labor 150,000 Direct manufacturing labor 150,000 Batch manufacturing costs 375,000 Variable costs (for setups, materials handling, quality control, and so on) Fixed costs that vary with number of batches, 300 batches x $1,250 per batch 375,000 Fixed manufacturing costs 125,000 Fixed manufacturing costs 125.000 Fixed marketing costs 65,000 Fixed marketing costs 55.000 $ 1,005,000 Total costs 1,005,000 Total costs Operating income 1,245,000 4 X More info Based on the above calculations, Medal One should the one-time only special order if it has no long-term implications because accepting the order operating income by Medal One has just received a special one-time-only order for 5,000 windows at Requirement 2. Suppose plant capacity were only 17,500 windows instead of 20,000 windows each month. The special order must either be taken in $125 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 Complete the analysis below to determine if Medal One should accept the special order under this scenario. customers in batch sizes of 50 windows (300 batches x 50 windows per batch = 15,000 windows). The special order requires Medal One to make the windows in With One-Time 100 batches of 50 windows." Only Special Order Under Reduced Plant Capacity Print Done Next 9:08 PM 12/11/2024 Q Search