Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help? s 20 26', coo 132.000 Joe, ooo we I ling 176,000 264 000 46 The Rets normally sell for SSI each. fixed manufacturing

please help?
image text in transcribed

s 20 26', coo 132.000 Joe, ooo we I ling 176,000 264 000 46 The Rets normally sell for SSI each. fixed manufacturing overhead Is $308,000 per year "thin thrange of 35000 through 44.000 Rets per year. Assume that due to a recession. Polaskl Company expects to sell only 5.000 Rets through regu'ar channels next year. A large *taN chain has offered to purchase 9.000 Rets if FWaski is willing to accept discount off the regular There wou'd be no sales commissions on this order, thus. variable Selling expenses would be slashed by 75%. However, PotaskJ Company would have to a Specw machine to engrave the retail ehains name on the 9,000 units. This machine would cost $18,000, PolasXi Company his no assurance that the retail chain will purchase acditiona: units the future. What is the financial advantage (disadvantage) of acceptln@ the Special orcer? (Round your Intermedlage Calculations to 2 decimal places.) 2. Refer to the data. Assurnc again that Po'aski Company expects to sell only 35000 Rets through regular channels n0ktyeSE' The like to make Of 9.000 Rets, The Army would reimburse Pofaski for Of the and production cos's assigned to thc by tho absorption costing system. ph'S gay additional fee Of $.20 unit. the army would up thc Rets its trucks. then. would be no this order. What is the financial advantage (disadvantage of accepting thc U.S. ArmyX specie' order? 3. Assume the same situation as described in [2) above. except that the company exoccts to so" 44,000 Rets through Thus, accepting the u.S_ Army's would up regular Of 9,000 Rets Given new is tho advantage (disadvantage) of ecccot;ng thc US.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Count Down The Past, Present And Uncertain Future Of The Big Four Accounting Firms

Authors: Jim Peterson

2nd Edition

1787147010, 9781787147010

More Books

Students also viewed these Accounting questions