10 06 points Save Polas Company manufactures and sells a single product called a Ret Operating capacity, the company can produce and 34,000 Rets per year Corts associated with this level of production and sales are given below Unit Total Direct ateriats 25 $ 350,00 Direct labor 10 340.000 Variable manufacturing overhead 3 Fixed manufacturing overhead 102,000 7 230,00 Variable selling expert Fixed selling pense 4 1.36. 6 200,000 Total cost 5 55 51.870,000 The Rets normally sell for $60 each. Fed manufacturing overhead as $238.000 per year within the anon of 20.000 trough 34.000 Rets per year Required: 1. Assume that due to a recession, Poloski Company expects to sell only 29,000 Rets through regu channels next year Alogenet chain has offered to purchase 5.000 Rets i Polski is willing to accept a 10% discount of the regular price. There would be to sales commissions on this order, thus, variable selling expenses would be stashed by 75%. However Poloski Company would have to purchase a special machine to engrave the retail chain's name on the 5.000 units. This machine would cost $10,000 Polak Company has no assurance that the retail chain will purchase additional units in the future. What is the financial advantage disadvantage of accepting the special order? (Round your intermediate calculations to 2 decimal places.) 2. Refer to the original data. Assume again that Polasis Company expects to sell only 29,000 Rets through regular channels next year The US Army would like to make a one-time-only purchase of 5,000 Rets. The Army would reimburse polask for all of the ble and fixed production costs assigned to the units by the company's absorption costing system, plus it would pay an additional fee of $180 per unit. Because the army would pick up the Rets with its own trucks, there would be no variable selling expenses associated with this order. What is the financial advantage disadvantage of accepting the US Army's special order? 3. Assume the same situation as described in (2) above, except that the company expects to sell 34000 Rets through regular channels next year. Thus, accepting the US Army's order would require giving up regular sales of 5.000 Rets. Given this new information, what is the financial advantage (disadvantage of accepting the US Army's special order? 1. 2 3