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velue 10.00 points Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 40,000 Rets
velue 10.00 points Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 40,000 Rets per year. Costs associated with this level of production and sales are given below Unit $20 800,000 Total Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense 320,000 120,000 280,000 160,000 240,000 Total cost $48 1,920,000 The Rets normally sell for $53 each. the range of 32,000 through 40,000 Rets per year Fixed manufacturing overhead is constant at $280,000 per year within Required: 1. Assume that due channels next year. a 16% discount off the regular pnce. Ther selling expenses special machine to engrave the retail chain's name on the 8,000 units. This machine would cost $16,000. Polaski Company has no assurance that the retail chain will purchase additional units in the future. Determine the impact on profits next year if this special order is accepted. to a recession, Polaski Company expects to sell only 32,000 Rets through regular A large retail chain has offered to purchase 8,000 Rets if Polaski is willing to accept re would be no sales commissions on this order, thus, variable would be slashed by 75%, However, Polaski Company would have to purchase a 2. Refer to the original data. Assume again that Polaski Company expects to sell only 32.000 Rets through
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