4 Print C aw Problem 11-22 (Algo) Special Order Decisions [LO11-4] Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company 42,000 Rets per year. Costs associated with this level of production and sales are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Total cost here to search Unit $ 25 6 10 374Ea 6 $51 The Rets normally sell for $56 each. Fixed manufacturing overhead is $294,000 per year within the range of Rets per year. Required: 1. Assume that due to a recession, Polaski Company expects to sell only 34,000 Rets through regular channe chain has offered to purchase 8,000 Rets if Polaski is willing to accept a 16% discount off the regular price. T commissions on this order; thus, variable selling expenses would be slashed by 75%. However, Polaski Comp purchase a special machine to engrave the retail chain's name on the 8,000 units. This machine would cost has no assurance that the retail chain will purchase additional units in the future. What is the financial advant accepting the special order? (Round your intermediate calculations to 2 decimal places.) 2 Refer to the original data Assume again that Polaski Company expects to sell only 34 000 Rets through re A Total $ 1,050,000 252,000 126,000 294,000 168,000 252,000 $ 2,142,000 S

Problem 11-22 (Algo) Special Order Decisions [LO11-4] Polaski Company manufactures and sells a single product called a Ret Operating at capacity, the company 42,000 Rets per year. Costs associated with this level of production and sales are given below: The Rets normally sell for $56 each. Fixed manufacturing overhead is $294,000 per year within the range Rets per year Required: 1. Assume that due to a recession. Polaski Company expects to sell only 34,000 Rets through regular chann chain has offered to purchase 8,000 Rets if Polaski is willing to accept a 16% discount off the regular price. commissions on this order: thus, variable selling expenses would be slashed by 75%. However, Polaskicon purchase a special machine to engrave the retail chain's name on the 8.000 units. This machine would cost has no assurance that the retail chain will purchase additional units in the future. What is the financial advan accepting the special order? (Round your intermediate calculations to 2 decimal places.) 2. Refer to the oricinal data Assume anain that Polaski Commanv exnects to sell onlv 34 non Retc theoigh