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Question based on modified problems 3.3 from the reference text (Flynn (2009) from page 78 of the textbook: Polymerco, a North American manufacturer of specialty polymers, has the following highly condense income statement, given in the table below. There current sales are to North American customers only. The president casually mentions that it would be nice to have more offshore sales to diversity the company. Polymerco Income Statement This year ($000) Last year (5000) Gross sales 26683 24762 Bad debt nil nil Net sales 26683 24762 COGS 22,243 4440 Contribution margin CM(%) 21,341 3421 13.8% 16.6% SG&A 2,122 2,067 2318 1354 Operating income Other income and interest on long-term debt -60 -50 Net Income 2258 1304 (a) if Polymerco's production is running at 84% capacity, what is the maximum discount in percentage that you can provide? Maximum discounts In this case, will you have a negative impact on the profitability of the business? . (b) if Polymerco's production is running at 100% capacity, how much percentage of discount can you provide without reducing the profitability? 9