Polaski Company manufactures and sells a single product called a Ret Operating at capacity, the company can produce and sell 34,000 Rets per year. Costs associated with this level of production and sales are given below: Unit Tota Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Total cost $20 $ 680,000 272, 000 102,000 170,000 68,000 204,000 44 $1,496,000 The Rets normally sell for $49 each. Fixed manufacturing overhead is $170,000 per year within the range of 24,000 through 34,000 Rets per year Required: 1. Assume that due to a recession, Polaski Company expects to seit only 24,000 Rets through regular channels next year. A large retail chain has offered to purchase 10 000 Res 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 narme on the 10,000 units. This machine would cost $20,000. Polaski Company has no assurance that the retail chain will purchase additional units in the future. What is the financial advantage (disadvantage) of accepting the special order? 2. Refer to the original data. Assume again that Polaski Company expects to sell only 24.000 Rets through regular