Help Save & Check my WA FRAU Total cost $ 46 $1,388,888 The Rets normally sell for $51 each. Fixed manufacturing overhead is $210,000 per year within the range of 22,000 through 30,000 Rets per year. eBook Print Required: 1. Assume that due to a recession, Polaski Company expects to sell only 22,000 Rets through regular channels next year. A large retai chain has offered to purchase 8,000 Rets if Polaski is willing to accept a 16% discount of the regular price. There would be no sales 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 8,000 units. This machine would cost $16,000. 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.) Reference 2. Refer to the original data Assume again that Polaski Company expects to sell only 22,000 Rets through regular channels next year. The US Army would like to make a one-time-only purchase of 8,000 Rets. The Army would pay a fixed fee of $180 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 US Army's special order? 3. Assume the same situation as described in (2) above, except that the company expects to sell 30.000 Rets through regular channels next year. Thus, accepting the US Army's order would require giving up regular sales of 8,000 Rets. Given this new Information, what is the financial advantage (disadvantage) of accepting the U.S. Army's special order? Help Save & Exit Check Problem 12-22 Special Order Decisions (L012-4) Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 30,000 Rets per year. Costs associated with this level of production and sales are given below: points Unit $ 20 eBook Print Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Total cost Total $ 600,000 180,000 90,000 210,000 120.000 180,000 $1,380,000 References $ 46 The Rets normally sell for $51 each. Fixed manufacturing overhead is $210,000 per year within the range of 22,000 through 30,000 Rets per year Required: 1. Assume that due to a recession, Polaski Company expects to sell only 22.000 Rets through regulad channels next year. A large retail chain has offered to purchase 8,000 Rets ir Polski is willing to accept a 10% discount of the regular price. There would be no sales 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 8.000 units. This machine would cost $16,000. Polaski Comparty itinnalinite in the fire What is the financial atuantaneirantanen has nagrance that the retail chain wil narraca