Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 42,000 Rets per year. Costs associated with this level of production and sales are given Unit Total Direct materials 25 1,050,000 Direct labor 336,000 Variable manufacturing overhead 126,000 Fixed manufacturing overhead 210,000 Variable selling expense 168,000 Fixed selling expense 252,000 Total cost 51 2,142,000 The Rets normally sell for $56 each. Fixed manufacturing overhead is constant at $210,000 per year within the range of 34,000 through 42,000 Rets per year. Required: 1. Assume that due to a recession, Polaski Company expects to sell only 34,000 Rets through regular channels next year. A large retail chain has offered to purchase if 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 8,000 units. This machine would cost s16,000. has no assurance that the retail chain will purchase additional units in the future. Determine the impact on profits next year ifthis special order is accepted. et profit