Answer the required 1-3 in the picture.

Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce sell 32,000 Rets per year. Costs associated with this level of production and sales are given below Direct materials Direct 1abor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Total cost s25 800,000 256,000 96,000 288,000 64,000 192,000 53 1,696,000 The Rets normally sell for $58 each. Fixed manufacturing overhead is $288.000 per year within the range of 26,000 through 32,000 Rets per year Required 1. Assume that due to a recession, Polaski Company expects to sell only 26,000 Rets through regular channels next year. A large retail chain has offered to purchase 6,00 Rets if Polaski is w ling to accept a 16% discount of the regular prie There would be no sales commissions on this order; thus, variable selling expenses would be slashed Company would have to purchase a special machine to engrave the retail chain's name on the 6,000 un by 75%. However, Polski would cost $12.000. Polaski Company has no assurance that the retail chain will purchase additional units in the future. What is the financial advantage (disadvantage) of accepting the special order? (Round ypur intermediate calculations to 2 decimal places.) 2. Refer to the original data. As next year. The U.S. Army would like to make a one-time-only purchase of 6,000 R per Ret, and it would reimburse Polaski Company for all costs of production (variable and fixed) associated with the uni sume again that Polaski Company expects to sell only 26,000 Rets through regular channels ets. The Army would pay a fixed fee of $1.40 Because the arm y would pick up the Rets with its own trucks, there would be no variable selling expenses associated with this order. What is the financial advantage (disadvantage) of accepting the U.S. Army's special order? 3. Assume the same situation channels next year. Thus, accepting the U.S. Army's order would require information, what is the financial advantage (disadvantage) of accepting t s described in (2) above, except that the company expects to sell 32,000 Rets through regular giving up regular sales of 6,000 Rets. Given this new he US. Army's special order