100 points Company manufactures and sells a single product called a Ret operating at capacity, the company can produce and sell 46,000 Rets per year Costs associated with this level of production and sales are given below: Unit 20 920,000 Direct materials 368,000 Direct labor 138,000 Variable manufacturing overhead 230,000 Fixed manufacturing overhead 184,000 Variable selling expense Fixed selling expense 276,000 Total cost S 46 2,116,000 The Rets normally sell for $51 each Fixed manufacturing overhead is constant at $230,000 per year within the range of 37.000 through 46.000 Rets per Required: 1. Assume that due to a recession, Polaski Company expects to sell only 37,000 Rets through regular channels next year A large retail 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 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