Polasid Company manufactures and sells a single product called a Ret. operating at capacity, the company can produce and sell 34,000 Rets per year. Costs associated with this level of production sales are given below: The Rets normally sell for $48 each. Fixed manufacturing overhead is constant at $238.000 per year within the range of 27.000 through 34.000 Rets per year. 1. Assume that due to a recession. Polaski Company expects to sell only 27.000 Rets through regular channels next year. A large retail chain has offered to purchase 7.000 Rets if Polaski is willing to accept a 16% discount off the regular price. There would be no sales commissions on this order. thus, variable selling expenses would be slashed by 75%. However, Polaski Company would have to purchase a special machine to engrave the retail chain's name on the 7.000 units. This machine would cost $14,000. Polaski Company has no assurance that the retail chain will purchase additional units in the future. Determine the impact on profits next year if this special order is accepted. Net profit by Refer to original data. Assume again that Polaski Company expects to sell only 27.000 Rets through regular channels next year. The U.S. Army would like to make a one-time-only purchase of 7.000 Rets. The Army would pay a fixed fee of $1.80 per Ret, and it would reimburse company for all costs of production (variable and fixed) associated with the units. Because the army would pick up the trucks, there would be no variable selling expenses associated with this order. If Polaski Company accepts the order, by how much will profits increase or decrease for the year? Net profit by