Polaski Company manufactures and selis a single product called a Ret. Operating at capacity, the company can produce and sell 46,000 Rets per year. Costs associaved with this level of production and sales are given below. The Ress normaly sell for $48 each. Fived manufacturing overhead is $322.000 per year within the range of 37.000 through 46.000 Rets per yeaf. Requlred: 1. Assume that due to a recession, Polaski Company expects to sell only 37,000 Rets through regular channels next year. A large retai chain has offered to purchase 9,000 Rets if Polaski is wiling 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 Compary would have to purchase a special machine to engrave the retail chain's name on the 9.000 unins. This machine would cost $16.000. Polaski Company has no assurance that the retall chain wit purchase addrional units in the future. What is the financiat advantage (disacvantage) of accepting the special order? (Round your Intermedlate esleculations to 2 declmal places.) 2. Refer to the original data. Assume again that Poiaski Compary expects to seli any 37000 Rets through regular channeis next yeat. The US, Army would like to make s one-time-ony purchase of 9.000 Rets. The Army would reimburse Poiaski for all of the variable and fixed production costs assigned to the units by the compamy's absorption costing system, plus it would pay an adortional fee of $1.20 per unit. Because the army would plek up the Rets with its own trucks. there would be no voriabie selling expenses associated With this ordec. What is the financial advantage (disadvantage) of accepting the US. Army's special order? 3. Assume the same stuation as described in (2) above, except that the company expects to sell 46,000 Rets through regular channels next yeat. Thus, accepting the U.S. Army's order would require ghing up regular sales of 9,000 Rets. Given this new information, what is the financial advantage (disadvantage) of accepting the U.S. Amry's special order