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...

Variable costs that vary with number of units produced
Direct materials	$600,000
Direct manufacturing labor	700,000
Variable costs (for setups, materials handling, quality control, and so on) that vary with number of batches, 100 batches × $1,500 per batch	150,000
Fixed manufacturing costs	250,000
Fixed marketing costs	400,000
Total costs	$2,100,000

has just received a special​ one-time-only order for

windows at

per window. Accepting the special order would not affect the​ company's regular business or its fixed costs.

makes windows for its existing customers in batch sizes of

windows

batches​ ×

windows per batch​ =

​windows). The special order requires

to make the windows in

batches of

windows.

Extracted text: Without With One-Time Only One-Time Only Special Order Special Order Difference 10,000 Windows 12,000 Windows 2,000 Windows 2500000 450000 Revenues Variable costs: Direct materials 600000 120000 Direct manufacturing labor 700000 140000 Batch manufacturing costs 150000 37500 Fixed costs: Fixed manufacturing costs 250000 400000 Fixed marketing costs


Extracted text: Variable costs: Direct materials 600000 120000 Direct manufacturing labor 700000 140000 Batch manufacturing costs 150000 37500 Fixed costs: Fixed manufacturing costs 250000 400000 Fixed marketing costs Total costs 400000 152500 Operating income Based on the above calculations, Reward One should the one-time only special order if it has no long-term implications because accepting the order | operating income by