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Polaski Company manufactures and selis a single product called a ReL. Operating at capacity, the company can produce and sell 36,000 Rets per year, Costs

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Polaski Company manufactures and selis a single product called a ReL. Operating at capacity, the company can produce and sell 36,000 Rets per year, Costs associated with this level of production and sales are glven below: The Rots normally sell for $51 each. Fixed manufacturing overheod is $324,000 per year within the range of 31,000 through 36,000 Rets per year. Required: 1. Assume that due to a recession, Polaski Company expects to sell only 3,000 Rets through regular channels next year, A large retail chain has offered to purchase 5.000 Rets if Polaskl 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 5,000 units. This machine would cost $10,000 Polaski Company has no assurance that the retail chain will purchase additional units in the future. What is the financial advantage (disadvantage) of accepting the speciai order? Note: Round your intermedlate calculations to 2 decimal places: 2. Aefer to the original data. Assume again that Polaski Company expects to sell only 31,000 Rets through regular channets next year. The U5. Army would like to make a one-time-only purchase of 5,000 Rets. The Army would reimburse Polaski for atl of the variable and tixed production costs assigned to the units by the company's absorption costing system, plus it would pey an additional fee of $200 per unit Becisuse the arrmy would pick up the Rets with its own trucks, there would be no variable selling oxpenses associated with this order. Whot is the financial advantage (d-sadvantage) of accepting the US Army's special order

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