nep event um Check my work Polask Company manufactures and sells a single product called a Ret Operating at capacity, the company can produce and sell 22.000 Rets per year Costs associated with this level of production and sales are given below. Unit 120 3 Direct materials Direct la Variable facturing overhead Fixed manufacturing overhead Variable sellingen Fixed selling expense Total cost Total $ 640,000 350.000 96.000 ,00 $4, 2 $ $1.936.000 The Rets normally sell for 553 each Fixed manufacturing overhead is $288.000 per year within the range of 25.000 through 32.000 Rets per year Required: 1. Assume that due to a recession Polasko Company expects to sell only 25.000 Rets through regular channels next year. A large retail chain has offered to purchase 7000 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 Polski Company would have to purchase a special machine to engrave the retail chain's name on the 7000 units This machine would cost $14.000. Polasku 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.) 2. Refer to the onginal data. Assume again that Polask Company expects to sell only 25,000 Rets through regular channels next year The US Army would like to make a one time-only purchase of 7000 Rets. The Army would reimburse polaski for all of the variable and foed production costs assigned to the units by the company's absorption costing system, plus would pay an additional fee of $2.00 per unit. 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 32,000 Rets through regular channels next year. Thus, accepting the US Army's order would require giving up regular sales of 7,000 Rets. Given this new information, what is the financial advantage disadvantage) of accepting the US Army's special order? 1 2 3