Polaski Company manufactures and sells 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: The Rets normally sell fo Fixed manufacturing overhead is $200,000 per year within the range of 32,000 through . Rets per year. Required: Assume that due to a recession, Polaski Company expects to sell only 32,000 Rets through regular channels next year. Al etail chain has offered to purchase 8,000 Rets if Polaski is willing to accept a 16% discount off the regular price. There woul ales commissions on this order; thus, variable selling expenses would be slashed by 75%. However, Polaski Company wou urchase a special machine to engrave the retail chain's name on the 8,000 units. This machine would cost $16,000. Polasi ompany has no assurance that the retail chain will purchase additional units in the future. What is the financial advantage isadvantage) of accepting the special order? (Round your intermediate calculations to 2 decimal places.) Refer to the original data. Assume again that Polaski Company expects to sell only 32,000 Rets through regular channe Required: 1. Assume that du to a recession, Polaski Company expects to sell only 32,000 Rets through regular channels next year. A large retail chain has offered to purchase 8,000 Rets if Polaski is willing to accept a 16% discount off the regular price. There would be ni sales commissions on this order, thus, variable selling expenses would be slashed by 75%. However, Polaski Company would have purchase a special machine to engrave the retail chain's name on the 8.000 units. This machine would cost $16,000. Polaski Company has no assurance that the retail chain will purchase additional units in the future. What is the financlal advantage (disadvantage) of accepting the special order? (Round your intermediate calculations to 2 decimal places.) 2. Refer to the origir tume again that Polaski Company expects to sell only 32.000 Rets through regular channels next year. The U.S. Arrmy _ o make a one-time-only purchase of 8,000 Rets. The Army would reimburse Polaski for all of the variable and fixed procu...., costs assigned to the units by the company's absorption costing system, plus it would pay an addit fee of $1.60 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 40,000 Rets through regular channels next year. Thus, accepting the U.S. Army's order would require giving up regular sales of 8,000 Rets. Given this new information, what is the financial advantage (disadvantage) of accepting the U.S. Army's special order? Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company 40,000 Rets per year. Costs associated with this level of production and sales are given below: The Rets normal'_ $49 each. Fixed manufacturing overhead is $200,000 per year within the Rets per year. Required: Assume that due to a recession, Polaski Company expects to sell only 32,000 Rets through regi etail chain has offered to purchase 8,000 Rets if Polaski is willing to accept a 16% discount off the ales commissions on this order; thus, variable selling expenses would be slashed by 75%. Howe urchase a special machine to engrave the retail chain's name on the 8,000 units. This machine The Rets normally sell for $49 each. Fixed manufacturing overhead is $200,000 per year within the range of 32,000 through 40,000 Rets per year: Required: 1. Assume that due to a recession, Polaski Cr oxpects to sell only 32,000 Rets through regular channels next year. A large retall chain has offered to purchase 8.000 : d is willing to accept a 16% discount off the regular price, there would be no sales commissions on this order, thus, varial xpenses would be slashed by 75%. However, Polaski Company would have purchase a special machine to engrave the reto.. cisuin s name on the 8,000 units. This machine would cost $16,000. 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 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 32,000 Rets through regular channels next year. The U.S. Army would like to make a one-time-only purchase of 8,000 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 addition fee of $1.60 per unit. Because the army would pick up the Rets with its own trucks, there would be no variable selling expenses assoclated 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 40,000 Rets through regular channels next vear Thus acceotina the US. Armv's order would reauire aivina up reaular sales of 8.000 Rets. Given this new Required: I. Assume that doe to a recession, Polasid Company expects to sell only 32,000 Rets through regular channels next year. A targe retail chain has offered to purchase 8.000 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 retal chain's name on the 8,000 units. This machine would cost $16,000. Polaski Company has no assurance that the retall 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 32,000 Rets through regular channels next year. The US. Army would like to make a one-time-only purchase of 8,000 Rets. The Army would reimburse Polaski for all of the variable and fiked production costs assigned to the units by the company's absorption costing system, plus it would pay an adilioni fee of $160 per unit. Because the army whit wink up the Rets with its own trucks, there would be no variable selling expenses associated with this order. What is the fir atage fdisadvantage) of accepting the U.S. Army's special order? 3. Assume the same situation as describes _ dove, except that the company expects to sell 40,000 Rets through regular channeis next year. Thus, accepting the U.S. Army's order would require giving up regular sales of 8,000 Rets. Glven this new nformation, what is the financial advantage (disadvantage) of accepting the U.S. Army's special order