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 as follows: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Total cost Unit $11.6 11.e 6.80 Total $540,000 930,000 180,000 360,00 120.ae 12.00 0.88 5.02 $57.00 $5,710,00 The Rets normally sell for $62 each. Fixed manufacturing overhead is constant at $360.000 per year within the range of 19,000 through 30.000 Rets per year Required: 1. Assume that due to a recession. Polask Company expects to seil only 19.000 Rets through regular channels next year A large retail chain has offered to purchase 11.000 Retsif Polask is willing to accept a price lower than the regular $62 There would be no sales commissions on this arder: thus variable selling expenses would be slashed by 75 However Polask Company would have to Durchase a special machine to engrave the retail chain's name on the 11.000 units. This machine would cost $22,000 Palasi Company has no assurance that the retail chain will purchase additional units any time in the future. Determine the maximum discount that Polaski can offer to this large retail chain in order for it to be no worse of compared to its current profil (Do not found Intermediate calculntions. Round your percentage answer to ne rest whole number) 2. Refer to the original data. Assume again that Polaski Company expects to sell only 19.000 Rets through regular channels next year The Canadian Forces would like to make a one-time only purchase of 11000 Rets. The Forces would pay a fixed fee of $180 per Ret and in addition would reimburse Polaski Company for all costs of production (variable and fixed associated with the units. Since the Forces would pick up the Rets with its own trucks, there would be no variable selling expenses of any type associated with this order if Polaski Company accepts this order by how much will profits be increased or decreased for the year? (Do not round intermediate calculations.) in pronts 3. Assume again that Polask Company expects to sell only 10.000 Rets through regular channels next year the Canadian Forces would like to make a one-time-only purchase of 11000 Rets The Forces would pay a fixed fee of 51.80 per Ret and in addition would reimburse Polaski Company for all costs of production variable and fixed associated with the units. Thus, accepting the Canadian Forces order would require giving up regular sales of 11000 Rets. Since the Forces would pick up the Rets with its own tricks, there would be no variable selling expenses of any type associated with this order. Compute the minimum fixed fee per unit that Polski must receive from the Canadian Forces in addition to the rembursement of production costs in order to accept this order (De ner round Intermediate calculations.) D Mimo tee per un indon to the use of dutto con