I mostly need help on the second part of this question. I've tried a few different things but I can't find the right costs to include and exclude.

Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 30,000 Rets per year Costs associated with this level of production and sales are given below: Unit Total Direct materials 15 450,000 Direct labor 240,000 Variable manufacturing overhead 90,000 270,000 Fixed manufacturing overhead 120,000 Variable selling expense Fixed selling expense 180,000 Total cost 45 1,350,000 The Rets normally sell for $50 each. Fixed manufacturing overhead is constant at $270,000 per year within the range of 25,000 through 30,000 Rets per year. Required 1. Assume that due to a recession, Polaski Company expects to sell only 25,000 Rets through regular channels next year. A large retail chain has offered to purchase 5,000 Rets if Polaski is willing to accept a 16% discount off the regular price. There would be no sales commissions on this order, thus, selling expenses would be slashed by 75%. However, Polaski Company would have purchase a special machine to engrave the retail chain's name on the 5,000 units. This machine would cost $10,000. Polaski Company has no assurance that the retail chain will purchase additional units in the future. Determine the impact on profits next year this special order is accepted Net profit by 65.000 ncreases