87 Check my work Direct materials Direct labor Variable manufacturing overhead $ 20 848,099 336,e00 126,88e Fixed manufacturing overhead 294,009 168,800 252,800 48 $2,016,80e Variable selling expense Fixed selling expense 4 6 Total cost $53 each. Fixed manufacturing overhead is $294,000 per year within the range of 33,000 through 42,000 Rets per year Required: 1. Assume that due to a recession, Polaski Company expects to sell only 33,000 Rets through regular channels next year. A large retai chain has offered to purchase 9 000 Rets if Polaski is willing to accept a 16% discount off the regular prie There would be ales 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 9,000 units. This machine would cost $18,000. Polaski 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 Polaski Company expects to sell only 33,000 Rets through regular channels next year. The U.S. Army would like to make a one time only purchase of 9,000 Rets. The Army would pay a fixed fee of $1.40 per Ret, and it would reimburse Polaski Company for all costs of production (variable and fixed) associated with the units. 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 U.S. Army's special order? K Prev6 of 6 Next> ^??? x 10:36 AM a d A13/2018 e