M Inbox - information@evolvix PD Madison Springs Conference X MST HST Calculator / Harmonize X D2L McGraw-Hill Connect - 22F X Question 5 - Module 10 - C X Course Hero X + X C https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252F... A Q Sign in . . . Module 10 - Chapter 9 Saved Help Save & Exit Submit Check my work 5 Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 50,000 Rets per year. Costs associated with this level of production and sales are as follows: 10 Unit Total O points Direct materials $ 23.00 $1, 150, 060 Direct labour 16.00 800, 000 Variable manufacturing overhead 11.00 550, 000 Fixed manufacturing overhead 17.00 850, 090 + Variable selling expense 4.00 200, 000 eBook Fixed selling expense 6.00 300, 090 Total cost $ 77.00 $3, 850, 00 Print The Rets normally sell for $82 each. Fixed manufacturing overhead is constant at $850,000 per year within the range of 29,000 through 50,000 Rets per year. References Required: 1. Assume that, due to a recession, Polaski Company expects to sell only 29,000 Rets through regular channels next year. A large retail chain has offered to purchase 21,000 Rets if Polaski is willing to accept a price lower than the regular $82. 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 21,000 units. This machine would cost $42,000. Polaski Company has no assurance that the retail chain will purchase additional units any time in the future. Determine the maximum discount that Polaski can offer to this large retail chain in order for it to be no worse off compared to its current profit. (Do not round intermediate calculations. Round your percentage answer to nearest whole number.) Maximum discount 1% 2. Refer to the original data. Assume again that Polaski Company expects to sell only 29,000 Rets through regular channels next year. The Canadian Forces would like to make a one-time-only purchase of 21,000 Rets. The Forces would pay a fixed fee of $3.00 per Ret, and in addition would reimburse Polaski Company for all costs of production (variable and fixed) associated with the units. Since the ED Enrees would nick in the Rate with its own trucks there would he no variable calling evnences of any tune accoriated with this order If Mc Hill Type here to search O EN & 5:06 PM 0'C Cloudy 01 4X ENG 11/16/2022M Inbox - information@evolvix PD Madison Springs Conference X HST HST Calculator / Harmonize X D2L McGraw-Hill Connect - 22F X Question 5 - Module 10 - C X Course Hero X + X C https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252F... A Q Sign in . . . Module 10 - Chapter 9 Saved Help Save & Exit Submit Check my work 5 2. Refer to the original data. Assume again that Polaski Company expects to sell only 29,000 Rets through regular channels next year. 10 The Canadian Forces would like to make a one-time-only purchase of 21,000 Rets. The Forces would pay a fixed fee of $3.00 per Ret, O points and in addition would reimburse Polaski Company for all costs of production (variable and fixed) associated with the units. Since the Forces would pick up the Rets with its own trucks, there would be no variable selling expenses of any type associated with this order. If Polaski Company accepts this order, by how much will profits be increased or decreased for the year? (Do not round intermediate + calculations.) Book in profits Print References 3. Assume again that Polaski Company expects to sell only 50,000 Rets through regular channels next year. The Canadian Forces would like to make a one-time-only purchase of 21,000 Rets. The Forces would pay a fixed fee of $3.00 per Ret, and in addition would eimburse Polaski Company for all costs of production (variable and fixed) associated with the units. Thus, accepting the Canadian Forces' order would require giving up regular sales of 21,000 Rets. Since the Forces would pick up the Rets with its own trucks, there would be no variable selling expenses of any type associated with this order. Compute the minimum fixed fee per unit that Polaski must receive from the Canadian Forces (in addition to the reimbursement of production costs) in order to accept this order. (Do not round intermediate calculations.) Minimum fixed fee per unit in addition to the reimbursement of production cost Mc Hill Type here to search O Hi EN 5:06 PM 0'C Cloudy 0 4X ENG 11/16/2022