PolaskI Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell

$34,000$ Rets per year. Costs assoclated with this level of production and sales are given below:

The Rets normally sell for $$53$ each. Fixed manufacturing overhead is $$306,000$ per year within the range of $25,000$ through $34,000$

Rets per year.

Requlred:

Assume that due to a recession, Polaski Company expects to sell only $25,000$ Rets through regular channels next year. A large

retall chain has offered to purchase $9,000$ Rets If Polaskl Is willing to accept a $16\%$ discount off the regular price. There would be no

sales commissions on this order, thus, varlable selling expenses would be slashed by $75\%.$ However, Polaski Company would have

to purchase a special machine to engrave the retall chaln's name on the $9,000$ units. This machine would cost $$18,000.$ PolaskI

Company has no assurance that the retall chain will purchase additional units in the future. What is the financlal advantage

$($disadvantage$)$ of accepting the special order?

Note: Round your Intermedlate calculations to $2$ decimal places.

Refer to the original data. Assume again that Polaski Company expects to sell only $25,000$ Rets through regular channels next year.

The U$.$S$.$ Army would like to make a one$-$time$-$only purchase of $9,000$ Rets. The Army would relmburse Polaskl for all of the varlable

and fixed production costs assigned to the units by the company's absorption costing system, plus it would pay an additional fee of

$$1\mathrm{.}60$ per unit. Because the army would plck up the Rets with its own trucks, there would be no varlable selling expenses

assoclated with this order. What is the financlal advantage $($disadvantage$)$ of accepting the U$.$S$.$ Army's special order?

Assume the same situation as described In $(2)$ above, except that the company expects to sell $34,000$ Rets through regular

channels next year. Thus, accepting the U$.$S$.$ Army's order would require giving up regular sales of $9,000$ Rets. Given this new

Information, what is the financlal advantage $($disadvantage$)$ of accepting the U$.$S$.$ Army's speclal order?