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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 ($000) Gross sales 26518 24818 Bad debt nil nil Net sales 26518 24818 COGS 22,243 21.341 4275 3477 16.1% 14% 2,122 2,067 Contribution margin CM(%) SG&A Operating income Other income and interest on long-term debt 2153 1410 -60 -50 Net income 2093 1360 (a) if Polymerco's production is running at 84% capacity, what is the maximum discount in percentage that you can provide? Maximum discount= % In this case, will you have a negative impact on the profitability of the business? No (b) if Polymerco's production is running at 100% capacity, how much percentage of discount can you provide without reducing the profitability? %