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need as answer as soon as possible Problem 9-5 Determining Whether to Accept or Reject a Special Order (L01 - CC5) Poloski Company manufactures and
need as answer as soon as possible
Problem 9-5 Determining Whether to Accept or Reject a Special Order (L01 - CC5) Poloski Company manufactures and sets a single product called a Ret: Operating at capacity, the company can produce and sell 32.000 Rets per year. Costs associated with this level of production and sales are as follows: Total Direct materials $13.505592,000 Direct labour 11.50 368.000 Variable manufacturing overhead 200.000 Find manufacturing overhead 12.50 400.000 Variable selling peme 4.00 120,000 Fixed selling 6.ee 192.000 Total cost $59.00 $1,650,000 6.50 The Rets normally sell for $64 each. Fixed manufacturing overhead is constant at $400.000 per year within the range of 20,000 through 32.000 Rets per year Required: 1. Assume that, due to a recession Poloski Company expects to sell only 20,000 Rets through regular channels next year. A large retail chain has offered to purchase 12.000 Rets of Polaski is willing to accept a price lower than the regular $64. There would be no sales commissions on this orderthus, 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 12.000 units. This machine would cost $24,000 Poloski 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.) want costs Help Save Edit Required: 1. Assume that due to a recesdon, Polski Company expects to sell only 20,000 Rets through regular channel next year A large rett chat has offered to purchase 12.000 Rets of Polasai is willing to accept a price lower than the regu 564. There would be no es 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 12.000 This machine would cost $24.000 Polski Company has no assurance that the retail chain will purchase additional units any time in the future Determine the mom count that Polas can offer to this large retail chain in order for it to be no worse off compared to its current prolit. Do nor round intermediate calculations. Round your percentage answer to nearest whole number) Maths.com 2. Refer to the original data. Assume again that Polosk Company expects to sell only 20.000 Rets through regular channels next year The Canadian Forces would like to make a one time only purchase of 12000 Rets, The Forces would pay a fixed fee of $200 per Ret and in addition would reimburse Polask Company for all costs of production table and fixed associated with the units Suice the Forces would pick up the Rets with its own trucks, there would be no veseling expenses of any type associated with this onder if Polasci Company accepts this order by how much will profits be increased or decreased for the year? (Do not round intermediate lista 3. Assume again that Polaski Company expects to sell only 32.000 Rets through regular channels next year. The Canadian Forces would like to make a one time only purchase of 12,000 Rets. The Forces would pay a foved fee of $200 per Ret, and in addition would reimburse Polaski Company for all costs of production (variable and foed) associated with the units. Thus, accepting the Canadian Forces' order would require giving up regular sales of 12.000 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 Polski 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 beperunt in action to the rembursement of production cos Step by Step Solution
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