Check my work 9 Polaski Company manufactures and sells a single product called a
ID: 2536463 • Letter: C
Question
Check my work 9 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 50 points Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing overhead Variable selling expense Fixed selling expense Total cost 760,000 228,000 114,000 342,000 76,000 228,000 1,748,000 eBook Print References $ 46 The Rets normally sell for $51 each. Fixed manufacturing overhead is $342,000 per year within the range of 32,000 through 38,000 Rets per yearExplanation / Answer
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Net financial disadvantage of accepting U.S Army's Order is as follows:
Selling Price 42.84 Direct Material 20.00 Direct Labour 6.00 Variable Mfg. Overhead 3.00 Variable Selling Expense 0.50 Contribution Per unit 13.34 Contribution for 6000 units 80,040 Cost of Special Machine 12,000 Net Gain from special order 68,040