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Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce sell 38,000 Rets per year. Costs associated

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Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce sell 38,000 Rets per year. Costs associated with this level of production and sales are given below and Unit Total Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Total cost $15 570,00e 304,000 114,000 342,800 152,800 228,800 $45 $1,710,808 4 6 The Rets normaly sel fr manufacturing overhead is $342.,00 per year within the range of 32.000 through O per year within the range of 32,000 through 38,000 Rets per year. Required: sume that due 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 6,000 R would be no sales commissions on this order; ets if Polaski is willing to accept a 16% discount off the regular price. There thus, variable selling expenses would be slashed by 75% However, Polaski ompany would have to purchase a special machine to engrave the retail chain's name on the 6,000 units. This machine the financial advantage (disadvantage) of accepting the special order? (Round your intermediate calculations to 2 decima would cost $12,000. Polaski Company has no assurance that the retail chain will purchase additional units in the future. What is places.)

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