Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 48,000 Rets per year....

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Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the companycan produce and sell 48,000 Rets per year. Costs associated with this level of production and sales are asfollows: Unit Total Direct materials $22.50 $1,080,000Direct labour 15.50 744,000Variable manufacturing overhead 10.50 504,000Fixed manufacturing overhead 16.50 792,000Variable selling expense 4.00 192,000Fixed selling expense 6.00 288,000Total cost $75.00 $3,600,000 The Rets normally sell for $80 each. Fixed manufacturing overhead is constant at $792,000 per yearwithin the range of 28,000 through 48,000 Rets per year.