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Could some pleas help me with required 1 , 2 , and 3 ? Thank you! Polaski Company manufactures and sells a single product called
Could some pleas help me with required and Thank you! Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell
Rets per year. Costs associated with this level of production and sales are given below:
The Rets normally sell for $ each. Fixed manufacturing overhead is $ per year within the range of through
Rets per year.
Required:
Assume due to a recession, Polaski Company expects to sell only Rets through regular channels next year. A large retail
chain offered to purchase Rets if Polaski will accept a discount off the regular price. There would be no sales
commissions on this order; thus, variable selling expenses would be slashed by However, Polaski Company would have to
purchase a special machine for $ to engrave the retail chain's name on the units. 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?
Note: Round your intermediate calculations to decimal places.
Refer to the original data. Assume Polaski Company expects to sell Rets through regular channels next year. The US Army
would like to make a onetimeonly purchase of Rets. The Army would reimburse Polaski for all of the variable and fixed
production costs assigned to the units by the company's absorption costing system, plus it would pay an additional fee of $ per
unit. 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 US Army's special order?
Assume the same situation as described in above, except the company expects to sell Rets through regular channels
next year. Thus, accepting the US Army's order would require giving up regular sales of Rets. Given this new information,
what is the financial advantage disadvantage of accepting the US Army's special order?
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