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parts 1-3 are for the same data. thanks Polaski Company manufactures and sellis a single product called a Ret. Operating at capacity, the company can

parts 1-3 are for the same data. thanks image text in transcribed
Polaski Company manufactures and sellis a single product called a Ret. Operating at capacity, the company can produce and sell 40.000 Rets per year. Costs associated with this level of production and sales are given below: 5 points Direct materials Direct labor Variable manutacturing overhead Tixed manufacturing ovechend Variable selling expense Thunding expense Total cost Unit 525 $1,000,000 320,000 3 120,000 7 200,000 4 160,000 240.000 $ 2.120,000 Door Him The Rets normally sell for $58 each. Fired manufacturing overhead is $280,000 per year within the range of 33,000 through 40,000 Rets per year Required: 1 Assume that due to a recession, Polak Company expects to sell only 33,000 Rets through regular channels next year. A large til chain has offered to purchase 7000 Rets Poloski 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, 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. Polaski Company has no assurance that the retail chain will purchase additional units in the future. What is the financial advantage disadvantages of accepting the special order? (Round your intermediate calculations to 2 decimal places) 2. Refer to the original data Assume again that Polak Company expects to sell only 33,000 Rets through regular channels next your The US Army would like to make a one-time-only purchase of 7000 Rets. The Army would remburse Poloski for all of the variable and fed production costs assigned to the units by the company's absorption costing system, plus it would pay an additional fee of $140 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 advantage of accepting the US Army's special order? 3. Assume the same situation as descrbed in (2) above, except that the company expects to se 40,000 Rets through regular channels next year. Thus, accepting the US Army's order would recuire giving up regular sales of 7000 Rots Give this new information what is the financial advantage disadvantage of accepting the US Army's special order

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