'iO points eBook Him Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 34,000 Rets per year. Costs associated with this ievel of production and sales are given below: Unit Total Direct materials 5 20 5 688,800 Direct labor 8 272,800 Variable manufacturing overhead 3 102,800 Fixed manufacturing Warhead 7 238,800 Variable selling expense 4 136,800 Fixed selling expense 6 204,800 Total cost 5 4B 5 1,632,800 The Rets normally sell for $53 each. Fixed manufacturing overhead is $238,000 per year within the range of 26,000 through 34,000 Rets peryear. Required: 1. Assume that due to a recession, Poiaski Company expects to sell only 26,000 Rets through regular channels next year. A iarge retail chain has offered to purchase 8,000 Rets if Polaski is willing to accept a 16% discount off the regular price. There wouid be no sales commissions on this order; thus, variable selling expenses would be slashed by 16%. 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 nancial 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 26,000 Rets through regular channels next year. The U.S. Army would like to make a one-timeonly purchase of 8,000 Rets. The Army would pay a xed fee of $1.60 per Ret, and it would reimburse Polaski Company for ail costs of production (variable and xed) associated with the units. Because the army would pick up the Rets with its own trucks, there would be no variabie seliing expenses associated with this order. What is the nancial advantage (disadvantage) ofaccepting the U.S. Army's special order? 3. Assume the same situation as described in (2} above, except that the company expects to sell 34,000 Rets through regular channels next year. Thus, accepting the U.S. Army's order would require giving up regular saies of 8,000 Rets. Given this new information, what is the flnancial advantage (disadvantage) of accepting the US. Army's special order? . inancial advantage - . inancial advantage - . inancial (disadvantage)