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Problem 12-22 Accept or Reject a Special order [L012-4] Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company
Problem 12-22 Accept or Reject a Special order [L012-4] 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 associated with this level of production and sales are given below: Total Unit Direct materials 20 680,000 Direct labor 272,000 102,000 Variable manufacturing overhead 238,000 Fixed manufacturing overhead Variable selling expense 136,000 Fixed selling expense 204,000 Total cost 48 1,632,000 The Rets normally sell for $53 each. Fixed manufacturing overhead is constant at $238,000 per year within the range of 29,000 through 34,000 Rets per year
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