Please show calculations. Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell

$38,000$ Rets per year. Costs associated with this level of production and sales are given below:

The Rets normally sell for $$56$ each. Fixed manufacturing overhead is $$266,000$ per year within the range of $30,000$ through $38,000$

Rets per year.

Required:

Assume due to a recession, Polaski Company expects to sell only $30,000$ Rets through regular channels next year. A large retail

chain offered to purchase $8,000$ Rets if Polaski will accept a $16\%$ discount off the regular price. There would be no sales

commissions on this order; thus, variable selling expenses would be slashed by $75\%.$ However, Polaski Company would have to

purchase a special machine for $$16,000$ to engrave the retail chain's name on the $8,000$ units. 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?

Note: Round your intermediate calculations to $2$ decimal places.