Check my w Polaski Company manufactures and sells a single product called a Ret Operating at capacity, the company can produce and te 32.000 Rets per year Costs associated with this level of production and sales are given below Unit Total Direct saterials $ 25 $ 300,000 Direct labor 192,000 Variable sanufacturing overhead Fixed manufacturing overhead 258,000 Variable selling expense 128,000 Fixed selling expense 192,000 Total cost $.53 $1,696,000 96,000 5 3 9 4 6 The Rets normally sell for $58 each. Fixed manufacturing overhead is $288,000 per year within the range of 24.000 though 2.000 Rets per year Required: 1 Assume that due to a recession Poloski Company expects to sell only 24,000 Rets through regular channelse your age chain has offered to purchase 8.000 Retsif Polasid is willing to accept a 16% discount off the regular priceThere will be no les commissions on this order thus variable selling expenses would be ashed by 75Howeve Polos compare purchase a special machine to engrave the retail chain's name on the 8.000 units. This machine would cost $16.000 Comparty, has no assurance that the retail chain will purchase additional units in the future What is the financial advantage of accepting the special order? (Round your intermediate calculations to 2 decimal places) 2. Refer to the original data Assume again that Polosk company expects to se only 24000 Rot thigh regularan The US Army would like to make a one time only purchase of 8.000 Rets, The Army would be poste and fixed production costs assigned to the units by the company absorption costing system and 5120 per unit Because the army would pick up the Rots with its own this there would be no varen with this ordet What is the financial advantage disadvantage of account the US Army's special order Check my w lor $58 each Fixed manufacturing overhead is $288,000 per year within the range of 24,000 through 32.000 Rets per year. Required: 1. Assume that due to a recession, Polaski Company expects to sell only 24,000 Rets through regular channels next year. A large retall chain has offered to purchase 8,000 Rets If Polaski is willing to accept a 16% discount off the regular price. There would be no sales commissions on this order, thus, variable selling expenses would be slashed by 75% However, Polaski Company would have to purchase a special machine to engrave the retail chain's name on the 8,000 units. This machine would cost 516 000 Polus Company has no assurance that the retail chain will purchase additional units in the future. What is the financial advantage disadvantages of accepting the special order? (Round your intermediate calculations to 2 decimal places.) 2. Refer to the original data. Assume again that Polaski Company expects to sell only 24.000 Rets through requtar channels next year The U.S. Army would like to make a one-time-only purchase of 8,000 Rets. The Army would reimburse Polasko for all of the variable and fixed production costs assigned to the units by the company's absorption costing system, plus it would pay an adational teret $1.20 per unit. Because the army would pick up the Rets with its own trucks, there would be no variable selling expenses associated with this order. What is the financial advantage (disadvantage) of accepting the U.S. Army's special order? 3. Assume the same situation as described in (2) above, except that the company expects to sell 32.000 Rets through regularne next year. Thus, accepting the US Army's order would require giving up regular sales of 8.000 Rets Given this new information was is the financial advantage (disadvantage) of accepting the US Army's special order? 1 2