O hear Het A Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 30.000 Rets per year Costs associated with this level of production and sales are given below. Unit Total Direct materials 1.20 Direct labor E $ 600,000 240,000 90,000 Variable manufacturing overhead 3 Fixed manufacturing overhead s Variable selling expense 150,000 120,000 180,000 Fixed selling expense Book Total cost $1,300,000 The Rets normally sell for $51 each. Fixed manufacturing overhead is $150,000 per year within the range of 24.000 through 30.000 Rets per year Hot Required: Pent 1. Assume that due to a recession, Polaski Company expects to sell only 24 000 Rets through regular channels next year A large retail chein has offered to purchase 6.000 Rets if Poleski is willing to accept a 16% discount off the regular price. There would be no sales commissions on this order, thus, variable selling expenses would be sleshed by 75% However, Polaski Company would have to purchase a special machine to engrave the retail chain's name on the 6.000 units. This machine would cost $12.000 Poleski 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 original data. Assume again that Poleski Company expects to sell only 24.000 Rets through regular channels next year The U.S. Army would like to make a one-time-only purchase of 6.000 Rets. The Army would reimburse Polesko for all of the variable and fixed production costs assigned to the units by the company's absorption costing system, plus it 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 U.S. Army's special order? 3. Assume the same situation as described in (2) above, except that the company expects to sell 30,000 Rets through regular channels next year. Thus, accepting the U.S. Army's order would require giving up regular sales of 6,000 Rets. Given this new information, what is the financial advantage (disadvantage) of accepting the US Army's special order? n BZD D $ 2 Polaska Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and se 30.000 Rets per year. Costs associated with this level of production and sales are given below Unit Total Direct materials 5:20 $ 600,000 Direct labor " Variable manufacturing overhead 3 240,000 90,000 Fixed manufacturing overhead 5 150,000 4 120,000 Variable selling expense Fixed selling expe Total cost 6 180,000 5:46 $1,300,000 The Rets normally sell for $51 each. Fixed manufacturing overhead is $150,000 per year within the range of 24.000 through 30.000 Rets per year. ! Required: 1 1. Assume that due to a recession, Polaski Company expects to sell only 24,000 Rets through regular channels next year A large retail chain has offered to purchase 6,000 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 selling expenses would be slashed by 75% However, Polaska Company would have to purchase a special machine to engrave the retail chain's name on the 6,000 units. This machine would cost $12,000. Polasks Company has no assurance that the retail chain will purchase additional units in the future. What is the financial advantage (disadvantage) of accepting the cial order? (Round your intermediate calculations to 2 decimal places.) 2. Refer to the original data. Assume again that Polaski Company expects to sell only 24,000 Rets through regular channels next year. The US Army would like to make a one-time-only purchase of 6,000 Rets. The Army would reimburse Polask for all of the variable and fixed production costs assigned to the units by the company's absorption costing system, plus it 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 30,000 Rets through regular channels next year Thus, accepting the US Army's order would require giving up regular sales of 6,000 Rets. Given this new information, what Check my work seis per year Dell year within the range of 24.000 through 30,000 Required: 1. Assume that due to a recession. Polaski Company expects to sell only 24,000 Rets through regular channels next year. A large retail chain has offered to purchase 6,000 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 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 6,000 units. This machine would cost $12,000 Polasks 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 original data. Assume again that Polaski Company expects to sell only 24,000 Rets through regular channels next year. The U.S. Army would like to make a one-time-only purchase of 6.000 Rets. The Army would reimburse Polaski for all of the variable and fixed production costs assigned to the units by the company's absorption costing system, plus it 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? 5 3. Assume the same situation as described in (2) above, except that the company expects to sell 30.000 Rets through regular channels next year. Thus, accepting the U.S. Army's order would require giving up regular sales of 6,000 Rets. Given this new information, what is the financial advantage (disadvantage) of accepting the U.S. Army's special order? ces 1 WN. 2 3