Special Ordee

POLASKI CORPORATION Regular Selling Price Total Direct materials Direct labor Variable manufacturing overhead Fandantung OH Accept or Reject a Special Order (L04 Polaska Company manufactures and sets a single product called a Ret Operating capacity the company can produce and sell 30.000 Rets per year costs associated with level of production ang sales are given below Unit Direct materia... $15 $450.000 Direct labor........... 200.000 Var manufacturing overhead..... Fixed manufacturing overhead Variable setting expense..... Fixed selling expense 180.000 Teost $1,350.000 Variable sing expense Ford ng expense 1. Impact on Profits The Rets normally sell for 550 each Feed manufacturing overhead is constant at $270.000 per year with the range of 25.000 though 30.000 Res per year Special order in units Cost of special machines Percentage Discount Discounted selling price per unit Variable costs per un *Dret materia 1. Assume that due to a recession Poias Company expects to selony 25 000 Rets through our channel next year. A large retail chanhas offered to purchase 5.000 Retsif Polak is willing to accept a 15% discount of the regular price There would be no se co n sente de thus expenses w e stashed by T Howeve Pro Company wou have to purchase a special machine engrave the retail char eone 000 units The machine would cost $10.000. PO Company has no assurance that the chain will purchase additional res in the Ture Detenthewact on pro y ears special order is accepted Vawe manufacturing over 2. Refer to the original da Assume that is company expects to s ony 25.000 Rets through regular channels next year The US Am woud to make one we purchase of 5000 Rets The Amy w pay a fed fee of 51 B per et and two bure Company for a cost of production and feed associated with the units because they would pick up the Res with its own trucks, there would be no vanteng expenses associated with the order of Polak Company accepts the order by how much we profit increase or decrease for the Total variable cost per Contribution margin per un Units Total contribution margin for order Change in foed bosts Change in net operating income 30 ? 2. Impact on Profits Assume the same usbon as that descobed in above, except that the company expects to 30.000 Rets through regular channels next year Thus accepting the US Amy's onderwe g up regular sales of 5000 Rets the Army's order is accepted by how much wel profits increase or decrease from what they would be the 5.000 Rets were sold through regular channels? Feed Fee Per Unit Total manasuring cost per unit Revenue from the order Being price un Vainable mamuliacing Lust per un Contribution margin per unit Units Total contribution margin for order Change in fixed costs (if any) Change in net operating income 3. Impact on Profits Lost regular sales Contribution margin per unit from U.S. Army Contribution margin per unit from regular sales Net incresae (decrease) in CM per unit Number of units Net change in profits if special order is accepted POLASKI CORPORATION Regular Selling Price Total Direct materials Direct labor Variable manufacturing overhead Fandantung OH Accept or Reject a Special Order (L04 Polaska Company manufactures and sets a single product called a Ret Operating capacity the company can produce and sell 30.000 Rets per year costs associated with level of production ang sales are given below Unit Direct materia... $15 $450.000 Direct labor........... 200.000 Var manufacturing overhead..... Fixed manufacturing overhead Variable setting expense..... Fixed selling expense 180.000 Teost $1,350.000 Variable sing expense Ford ng expense 1. Impact on Profits The Rets normally sell for 550 each Feed manufacturing overhead is constant at $270.000 per year with the range of 25.000 though 30.000 Res per year Special order in units Cost of special machines Percentage Discount Discounted selling price per unit Variable costs per un *Dret materia 1. Assume that due to a recession Poias Company expects to selony 25 000 Rets through our channel next year. A large retail chanhas offered to purchase 5.000 Retsif Polak is willing to accept a 15% discount of the regular price There would be no se co n sente de thus expenses w e stashed by T Howeve Pro Company wou have to purchase a special machine engrave the retail char eone 000 units The machine would cost $10.000. PO Company has no assurance that the chain will purchase additional res in the Ture Detenthewact on pro y ears special order is accepted Vawe manufacturing over 2. Refer to the original da Assume that is company expects to s ony 25.000 Rets through regular channels next year The US Am woud to make one we purchase of 5000 Rets The Amy w pay a fed fee of 51 B per et and two bure Company for a cost of production and feed associated with the units because they would pick up the Res with its own trucks, there would be no vanteng expenses associated with the order of Polak Company accepts the order by how much we profit increase or decrease for the Total variable cost per Contribution margin per un Units Total contribution margin for order Change in foed bosts Change in net operating income 30 ? 2. Impact on Profits Assume the same usbon as that descobed in above, except that the company expects to 30.000 Rets through regular channels next year Thus accepting the US Amy's onderwe g up regular sales of 5000 Rets the Army's order is accepted by how much wel profits increase or decrease from what they would be the 5.000 Rets were sold through regular channels? Feed Fee Per Unit Total manasuring cost per unit Revenue from the order Being price un Vainable mamuliacing Lust per un Contribution margin per unit Units Total contribution margin for order Change in fixed costs (if any) Change in net operating income 3. Impact on Profits Lost regular sales Contribution margin per unit from U.S. Army Contribution margin per unit from regular sales Net incresae (decrease) in CM per unit Number of units Net change in profits if special order is accepted