polaski company manufactured

9 5 Polaski Company manufactures and sells a single product called a Ret Operating at capacity, the company can produce and sell 30,000 Rets per year . Costs associated with this level of production and sales are given below: Unit Total Direct materials $25 $750,000 Direct labor 10 300,000 Variable manufacturing overhead 3 90,000 Fixed manufacturing overhead 270,000 Variable selling expense 2 60,000 Fixed selling expense 180,000 Total cost 555 $1.650,000 The Rets normally sell for $60 cach. Fixed manufacturing overhead is $270,000 per year within the range of 23,000 through 30,000 Rets per year Required: 1. Assume that due to a recession, Polaski Company expects to sell only 23,000 Rets through regular channels next year. A large retail chain has offered to purchase 7.000 Rets If Poloski 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 7000 units. This machine would cost $14,000. Polask 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? (Round your intermediate calculations to 2 decimal places)