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Polaski Company manufactures and sells a single product called a Ret Operating at capacily, the company can produce and seir 36.000 Rets per yeac Costs associated with this level of production and sales are given below The Rets normady seal for $48 eoch. Fixed manufacturing overtead is $324,000 per yeor within the range of 31,000 through 36,000 Rets per yeat. Required: 1. Assume that due to a recession, Polaski Company expects to sell only 31,000 Retythrough regular channeis next yeac A larpe retail chain has offered to purchase 5,000 Rets it Polarki is wiling to accept a 16% discourt off the regular price. There would be no sales commissions on this order, thus, variable seling expenses would be slashed by 75%. However, Palaski Company would have to purchase a special machine to engrave the retail chain's name on the 5,000 units. This machine would cost 510,000 . Polaski Company has no assurance that the retail chain will purchase addisonal units in the future. What is the financial advanage (disodvantogel of accepting the special order? (Round your intermediate calculations to 2 decimal places.) 2. Peter to the original data. Assume agoin that Potaski Company expects to sel only 34000 Rets through regular channels neut yoar The US. Aumy would lke to make a one-time-only purchase of 5.000 fets. The Army would reimburse Polaski for all of the variable and fixed preduction costs assigned to the unis by the company's absorption costing system, plas it would pary an additionsi fee of $180 per unit. Because the army would pick up the fets with its own trucks, there would be no varisble selling expenses associated with this ordec. What is the financial advanage (disadvantnge) of actepting the US. Armys special ceder? 3. Assume the same situation as described in (2) above, except that the compary expects to sed 36,000 Rots through regular channols next year. This, accepting the U.S. Army's order would require ging up regulat sales of 5.000 Aets. Gven thes new information. ofat is the financial advantoge (disadvantage) of accepting the US. Army's special order

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