2. Refer to the original data. Assume again that Polaski Company expects to sell only 15,000 Rets through regular channels next year. The Canadian Forces would like to make a one-time-only purchase of 7,000 Rets. The Forces would pay a fixed fee of $1.30 per Ret, and in addition would reimburse Polaski Company for all costs of production (variable and fixed) associated with the units. Since the Forces would pick up the Rets with its own trucks, there would be no variable selling expenses of any type associated with this order. If Polaski Company accepts this order, by how much will profits be increased or decreased for the year? (Do not round intermediate calculations.)

points Required: 1. Assume that, due to a recession, Polaski Company expects to sell only 15,000 Rets through regular channels next year. A large retail chain has offered to purchase 7,000 Rets if Polaski is willing to accept a eBook price lower than the regular $54. 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 Print special machine to engrave the retail chain's name on the 7,000 units. This machine would cost $14,000. Polaski Company has no assurance that the retail chain will purchase additional units any time in the future. Determine the maximum discount that Polaski, can offer to this large References retail chain in order for it to be no worse off compared to its current profit. (Do not round intermediate calculations. Round your percentage answer to nearest whole number.) Maximum discount %