The Award Plus Company manufactures medals for winners of athletic events and other contests. Its manufacturing plant has the capacity to produce 6,000 medals each month. Current production and sales are 5,000 medals per month. The company normally charges $200 per medal. Cost information for the current activity level is as​follows: Variable costs that vary with number of units produced
Direct materials $150,000
Direct manufacturing labor75,000
Variable costs (for setups, materials handling, quality control, etc.) that vary with number of batches, 200 batches x $1,000 per batch 200,000
Fixed manufacturing costs 200,000
Fixed marketing costs 25,000
Total costs $650,000
Award Plus has just received a special​ one-time-only special order for 1,000 medals at $175 per medal. Accepting the special order would not affect the​ company's regular business. Award PlusAward Plus makes medals for its existing customers in batch sizes of 25 medals ​(200 batches x 25 medals per batch​ = 5,000 ​medals). The special order requires Award Plus to make the medals in 10 batches of 100 each.
1a. Should Award Plus accept this special​ order? Show your calculations.
1b. Based on above calculations, Award Plus should:.
i. (Accept or Reject) the​ one-time-only special order if it has no​long-term implications because accepting the order
ii. (decreases or Increases) operating income by ​$