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this image is clear now please help Polaski Company manufactures and seils a single product called a Ret Operating a capacity, the company can procuce
this image is clear now please help
Polaski Company manufactures and seils a single product called a Ret Operating a capacity, the company can procuce and sell 36,000 Rets pet year Costs associated with this level of production and sales are given below The Fets normally sell for $58 each Fixed manufacturing overhead is $252,000 per year within the fonge of 27,000 through 36,000 Retsper year Required: 1. Aswume that due to a recesson, Polask Company expects to sell only 27000 Rets through regular channels next yeat. A large retal chain has offered to purchase 9000 Aets if Polaskils wiling to accept a 168 discount off the regolar pucce There would be no sales commiesions on this order, thus, vartable selling expenses would be slashed by 75%. However. Polski Company would have to puschase a special machine to engrave the retail chan's name on the 9,000 units. This machine would col 518000 . Podask Company has no ascurance that the retail chain will purchase additional units in the future What is the financial advantage (disadvantage) of accepling the speat otder? (Round your intermediote calculations to 2 decimal places.) 2. Reler to the original data A Asume agoin that Polask Company expects to sell only 27000 Rels thiough regutar channets next yede The US Army would like to make a one-time-only purchase of 9,000 Rets. The Aifry would reimaurse Polaski for at of the variable and fixed prodiction casts assigned to the units by the company's absorption costing system, plusit would pay an additional tee of $180 per unit Because the arny would pick up the Rets with its own truckt, there would be no variabie seling expenses criociated with thes order What is the financial advantage fdisacvantagel of accepting the US Aimy's special orded? 3 Assumethe same stuation as descibed in (2) wove, except that the coropiny expectito setl 36,000 fiets through ragutar chainnefin hext yeat inus, gocepting the US Airy's order would require giving up regular sales or 9,000 Rets Given this new informalion, what is the financal advantoge losadvantogel of accepting the US Armyss special order Step by Step Solution
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