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9 Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 46,000 Rets per year.

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9 Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 46,000 Rets per year. Costs associated with this level of production and sales are given below. 0.9 points Unit $ 20 00:46:24 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fived selling expense Total cost 2 2 Total $ 920, eee 276,000 138,000 322,000 92.000 276,000 $ 2,024,000 $44 BOOK The Reto normally tell for $49 each. Fixed manufacturing overhead a $322,000 per year within the range of 37.000 through 46.000 Rets per year Dent france Required: 1. Assume that due to a recession, Polaski Company expects to sell only 37,000 Rets through regular channe's next year. A large retall chain has offered to purchase 9,000 Rets If Polaski is willing to accept a 16% discount off the regular price. There would be no sales commissions on this order, thus, variable selling expenses would be slothed by 75. However, Polak 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. Polask Company hos no assurance that the retail choin 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 Polak Company expects to sell only 37000 Rets through regular channels next year The US Army would like to make a one-time only purchase of 9.000 Rets. The Army would pay a fixed fee of $2.00 per Ret, and it would reimburse Potatkl 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. Ammy's special order? 3. Assume the same situation as described in (21 bove, except that the company expects to set 45,000 Rets through regula channels next year. Thus, accepting the US Army's order would require giving up regulares of 9.000 Reto. Given the new Information, what the financial advantage disadvantage of accepting the US Army special order? Me Frex Next >

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