Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 46,000 Rets per year. Costs associated with this level of production and sales are given below: 15 690,000 Direct materials Direct labor Variable manufacturing overhead 138.000 Fixed manufacturing overhead 322,000 184.000 Variable selling expense Fixed selling expense 276,000 43 1,978,000 Total cost The Rets normally sell for $48 each. Fixed manufacturing overhead is constant at $322,000 per year within the range of 36,000 through 46,000 Rets per year. Required: 1. Assume that due to a recession, Polaski Company expects to sell only 36,000 Rets through regular channels next year. A large retail chain has offered to purchase 10,000 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 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. Determine the impact on profits next year ifthis special order is accepted. Net profit