please answer within 30 minutes. Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell38,000 Rets per year. Costs associated with this level of production and sales are glven below:UnitTotal$ 20$ 760,000304, 000114,000266,000152,000228,000$ 1,824,000Direct materialsDirect labor8.Variable manufacturing overheadFixed manufacturing overheadVariable selling expenseFixed selling expense7.46.Total cost$ 48The Rets normally sell for $53 each. Fixed manufacturing overhead is $266,000 per year within the range of 29,000 through 38,000Rets per year.Requlred:1. Assume that due to a recession, Polaski Company expects to sell only 29,000 Rets through regular channels next year. A large retallchain has offered to purchase 9,000 Rets if PolaskI is willing to accept a 16% discount off the regular price. There would be no salescommissions on this order, thus, variable selling expenses would be slashed by 75%. However, Polaski Company would have topurchase a speclal machine to engrave the retail chain's name on the 9,000 units. This machine would cost $18,000. Polaski Companyhas no assurance that the retail chain will purchase additional units In the future. What is the financial advantage (disadvantage) ofaccepting the special order? (Round your Intermedlate calculations to 2 decimal places.)2. Refer to the orliginal data. Assume agaln that Polaski Company expects to sell only 29,000 Rets through regular channels next year.The U.S. Army would like to make a one-time-only purchase of 9,000 Rets. The Army would reimburse Polaski for all of the varlableand fixed production costs assigned to the units by the company's absorption costing system, plus it would pay an additional fee of$1.40 per unit. Because the army would pick up the Rets with Its own trucks, there would be no varlable selling expenses associatedwith this order. What is the financlal 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 38,000 Rets through regular channelsnext year. Thus, accepting the U.S. Army's order would require giving up regular sales of 9,000 Rets. Given this new information, whatis the financial advantage (disadvantage) of accepting the u.S. Ārmy's special order?1.2.3.

Solution 1: Regular Selling price $53.00 Less: Discount 16% Selling price for…

Polaski Company manufactures and sells a single product called a Ret. Operating at capacity,. the company can produce and sell 38,000 Rets per year. Costs associated with this level of production and sales are given below: Unit $ 20 Total S 760,000 304, 000 Direct materials Direct labor 8 Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense 3 114,000 266,000 152,000 228,000 $ 1,824,000 7 4 $ 48 Total cost The Rets normaily sell for $53 each. Fixed manufacturing overhead is $266,000 per year within the range of 29,000 through 38,000 Rets per year. Requlred: 1. Assume that due to a recession, Polaski Company expects to sell only 29,000 Rets through regular channels next year. A large retai chain has offered to purchase 9,000 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 9,000 units. This machine would cost $18,000. Polaski Company nas no assurance that the retail chain will purchase additional units In the future. What Is the financial advantage (disadvantage) 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 29,000 Rets through regular channels next year. The U.S. Army would like to make a one-time-only purchase of 9,000 Rets. The Army would reimburse Polaski for all of the variabie and fixed production costs assigned to the units by the company's absorption costing system, plus It would pay an additional fee of $1.40 per unit. Because the army would pick up the Rets with its own trucks, there would be no varlable 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 38,000 Rets through regular channel next year. Thus, accepting the U.S. Army's order would require giving up regular sales of 9,000 Rets. Given this new information, what s the financial advantage (disadvantage) of accepting the U.S. Army's special order?