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manufactures and sells a single product called a Ret at capacity, the company can produce and sell 30,000 Rets per year. Costs associated with this

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manufactures and sells a single product called a Ret at capacity, the company can produce and sell 30,000 Rets per year. Costs associated with this level of prodaction and sales are given below 515 $ 450,000 90,000 120,000 6 180,000 345 $1,350,000 Direct materials Direct labor Variable manufacturing overhead Varlable selling expense Fixed selling expense Total cost The Rets normally sell for $50 each Fixed manufacturing overhead is constant at $270,000 per year within the range of 25,000 through 30,000 Rets per year that due to a recession, Polaski Company expects to sell only 25,000 Rets through regular channels next year. A large retail chain has offered to purchase 5,000 Rets if Polaski is willing to accept a 16% discount off the regular price There would be no sales commissions on this order thus variable seling expenses would be slashed by 75% However, Polaski Company would have to purchase a machine to engrave the retail chain's name on the 5,000 units This machine would cost $0 000. Polaski Company has no assurance that the retail chain will purchase additional units in the future. Determine the impact on profits next year i this special order is accepted OI O Type here to search 3 4 5 6 2 a w E R TYU

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