I'm stuck on number 2.

Polaski Company manufocturos and solls a single product called a Ret. Operating at capacity, the company con produce and sell 48,000 Rets per year. Costs associated with this levol of production and sales are givon bolow: The Rets normally sell for $53 each. Fixed manufacturing overhead is $336,000 per year within the range of 39,000 through 48,000 Rets per yeor. Required: 1 Assume that due to a recession. Polaskl Company expects to sell only 39,000 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, varlable solling expenses would be slashed by 75%. Howover, Polaski Company would have to purchose a special machirie to ongrave the retall chair's name on the 9,000 units. This machine would cost $18,000. Polaskl Company has no assurance that the retall chaln will purchase additional units in the future. What is the financial advantage (disadvantage) of accepting the special order? (Round your intermedlate calculations to 2 decimal places.) 2. Refer to the original data. Assume again that Polaski Company expects to sell only 39.000 Rets through regular channels next year. The US. Army would like to make a one-time-only purchose of 9.000 Rets. The Army would relmburse Polaski for all of the variable and fixed production cosis assigned to the units by the company's obsorption costing system, plus it would pay an additional fee of $120 per unit. Because the army would pick up the Rets with its own trucks, there would be no varlable selling expenses assoclated with this order. What is the financtal advantage (disadvantage) of accepting the US. Army's special order? 3. Assume the same situation as described in (2) above except that the company expects to sell 48,000 Rets through regular channels next year. Thus, accepting the US. Army's order would require giving up regular sales of 9,000 Rets. Glven this new information, what is the financial advantage (disadvantage) of accepting the U.S. Army's special order