Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 44,000 Rets per year. Costs associated with this level of production and sales are given below Unit Total Direct raterials Direct labor $ 20 880,000 440,000 32,000 308,000 88,000 6 264,000 10 Variable panufacturing overhead Pixed manufacturing overhead Variable selling expense rixed selling expense Total cost $48 2,112,000 The Rets normally sell for $53 each. Fixed manufacturing overhead is $308.000 per year within the range of 37000 through 44,000 Rets per year Required: 1 Assume that due to a recession, Polaski Company expects to sell only 37000 Rets through regular channels next year. A large retail chain has offered to purchase 7000 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, Polski Company would have to purchase a special machine to engrave the retail chain's name on the 7000 units. This machine would cost $14,000. Polaski Company has no assurance that the retal chain will purchase additional units in the future. What is the financial advantage (disadvantage) of accepting the special order? (Round your intermediate calculations to 2 declmal places.) 2. Refer to the original data. Assume again that Polaski Compary expects to sell only 37,000 Rets through regular channe's next year The U.S. Army would like to make a one-time-only purchase of 7000 Rets. The Army would pay a fixed fee of $1.60 per Ret, and it would reimburse Polaski Company for all costs of production (variable and fixed) associated with the units. Becouse the army would pick up the Rets with its own trucks, there would be no variable selling expenses associated with this order. What is the financial advantage (disadvantage) of accepting the U.S. Army's special order? 3. Assume the same situation as described in (2) above. except thet the company expects to sell 44,000 Rets through regular channels next year. Thus, accepting the U.S. Army's order would requ're giving up regular sales of 7000 Rets. Given this new information, what is the financial advantage (disadvantage) of accepting the U.S. Army's special order