Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 38,000 Rets per year. Costs associated with this level of production and sales are given below: The Rets normally sell for $53 each. Fixed manufacturing overhead is $266,000 per year within the range of 31,000 through 38,000 Rets per year. Required: 1. Assume that due to a recession, Polaski Company expects to sell only 31,000 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. Poloski Company accepting the special order? (Round your intermediate calculations to 2 decimal places.) 2. Refer to the original data. Assume again that Polaski Company expects to sell only 31,000 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 reimburse Polaski for all of the variable and fixed production costs assigned to the units by the company's absorption costing system, plus it would pay an additional fee of with this order. Whot is the financial advantage (disadvantolith its own trucks, there would be no variable selling expenses associated the Uantogef of accepting the U.S. Army's special order? next year. Thus, accepting the Us A tribed in (2) above, except that the company expects to sell 38,000 Rets through regular channels is the financial advantace fdisadvantaoel of acceptine require giving up regular sales of 7,000 Rets. Given this new information, what