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4 points Polski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 44,000 Rets per

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4 points Polski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 44,000 Rets per year. Costs associated with this level of production and sales are given below Unit Total Direct materiais $ 25 $1.100.000 Direct labor B 352.000 Variable manufacturing overhead 3. 132.000 Fixed manufacturing overhead 9. 396,000 Variable selling expense 4 175,000 Fixed selling expense 266,01 Total cost $ 55 52.420,000 be The Ruts normally sell for $50 each. Foed manufacturing overhead is $396,000 per year within the range of 36,000 through 44.000 Rets per year Required: 1. Assume that due to a recession, Poiaski Company expects to sef only 36,000 Rets through regular channels next year. A forge retail chain has offered to purchase 8.000 Retsif Polaski is willing to accept a 16% discount of the regular price. There would be no sales commissions on this order; thus, variable selling expenses would be slashed by 75%. However, Polaski Company would have to purchase a special machine to engrave the retail chain's name on the 8.000 units. This machine would cost $16,000Pola 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 polask Company expects to sell only 36,000 Rets through regular channels next year, The US Army would like to make a one-time-only purchase of 8.000 Rets. The Army would pay a fixed fee of $140 per Ret, and it would reimburse Poloski Company for all costs of production variable and fed) associated with the units. Because the any would pick up the Rets with its own trucks, there would be no variabile selling expenses associated with this ordet. What is the financial advantage (disadvantage) of accepting the US Army's special order? 3. Assume the same situation as described in 12) above, except that the company expects to sell 44,000 Rets through regular channels next year. Thus, accepting the U.S. Army's order would require giving up regular sales of B.000 Rets. Given this new information, what is the financial advantage (disadvantage of accepting the US Army's special order

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