Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 42,000 Rets per year. Costs associated with this level of production and sales are given below: Unit Total Direct materials 20 840,000 Direct labor 252,000 Variable manufacturing overhead 126,000 Fixed manufacturing overhead 378,000 Variable selling expense 84,000 Fixed selling expense 252,000 Total cost 46 1,932,000 The Rets normally sell for $51 each. Fixed manufacturing overhead is constant at $378,000 per year within the range of 34,000 through 42,000 Rets per year. Required: 1. Assume that due to a recession, Polaski Company expects to sell only 34,000 Rets through regular channels next year. retail chain has to purchase 8,000 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%. would have to special machine to engrave the retail chain's name on the 8,000 units. would cost future. Determine has no assurance that the retail chain will purchase additional units in the the impact on profits next ye if this special order is accepted et profit increases