Polaski Company manufactures and sells a product called a Ret Operating at capacity, the company can produce and sell 36.000 Rets per year Costs associated with the level of production and sales are given below: The Rets normally sell for $46 each Fixed manufacturing overhead is constant at $180,000 per year within the range of 27.000 through 36.000 Rets per year. Assume that due to a recession. Polanski Company expects to sell only 27.000 Rets through regular channels next year A large retail chain has offered to purchase 9.000 Rets if Polanski 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. Polanski Company would have to purchase a special machine to engrave the retail chain's name on the 9.000 units This machine would cost $18,000 Polanski 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 Refer to the original data Assume again that Polanski 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 9.000 Rets The Army would pay a fixed fee of $1.60 per Ret. and it would reimburse Polanski Company (or all costs of production (variable and fixed) associated with the units. Because the army would pick up the Rets with its own trucks, there would be no variable selling expenses associated with this order If Polanski Company accepts the order, by how much will profits increase or decrease for the year? Assume the same situation as that describes in (2) above, except that the company expects to sell 36.000 Rets through regular channels next year. Thus, accepting the U.S. Army's order would require giving up regular sales of 9000 Rets. It the