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as fast as possible Polaski Company manutactures and sells a single proctuct callad a Fiet Operating at capacity, the company can produce and sell 46,000

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Polaski Company manutactures and sells a single proctuct callad a Fiet Operating at capacity, the company can produce and sell 46,000 Rets per year Costs associated with this Invol of production and sales are given below [7 marks] (CLOA) The Rets normally seil for $53 each. Fixed manutacturing overhead is $322,000 per year within the range of 40,000 through 46,000 Rets per year Required: The Rets normally sell for $53 each. Fixed manutaciuing overhead is $322,000 per year within the range of 40,000 through 46,000 Rets per year Assume that due to a recession. Polaski Company expects to sell only 40,000 Rets through regular channels nextyear: A large retail chain has otfered to purchase 6,000 Rets il Polaski is wiling to accept a 16% discount Required: of the regular price (ie at a price of $44.52 per Ret) There would be no sales commissions on this order thus, variable selling expenses would be slashed by 75% (1.e. 50.5 per Ret) However. Polaski Company would thave to purchase a special machine to engrave the retal chain's name on the 6,000 unts. This machine would cost 512:000. Polaski Company has no assurance that the retal chain will purchase additional units in the future. What is the financial advantage (disadvantage) of accepting the special order

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