Polaskl Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 32,000 Rets per year. Costs assoclated with this level of production and sales are given below: The Rets normally sell for $55 each. Flxed manufacturing overhead is $224,000 per year within the range of 25,000 through 32,000 Rets per year. Required: 1. Assume that due to a recession, Polaskl Company expects to sell only 25,000 Rets through regular channels next year. A large retall chaln has offered to purchase 7,000 Rets If Polaskl Is willing to accept a 16% discount off the regular price. There would be no sales commissions on this order, thus, varlable selling expenses would be slashed by 75%. However, Polaskl Company would have to purchase a special machine to engrave the retall chain's name on the 7,000 units. This machine would cost $14,000. PolaskI Company has no assurance that the retall chain will purchase additional units in the future. What is the financlal advantage (disadvantage) of accepting the speclal order? (Round your Intermedlate calculations to 2 decimal places.) 2. Refer to the original data. Assume again that Polaski Company expects to sell only 25,000 Rets through regular channels next year. The U.S. Army would IIke to make a one-tIme-only purchase of 7,000 Rets. The Army would relmburse PolaskI for all of the varlable and fixed production costs assigned to the unlts by the company's absorption costing system, plus it would pay an additional fee of $1.40 per unlt. Because the army would plck up the Rets wlth its own trucks, there would be no varlable selling expenses assoclated with this order. What is the financlal advantage (disadvantage) of acceptIng the U.S Army's special order? 3. Assume the same sltuation as described in (2) above, except that the company expects to sell 32,000 Rets through regular channels next year. Thus, accepting the U.S. Army's order would require givIng up regular sales of 7,000 Rets. Glven this new Information, what is the financlal advantage (dlsadvantage) of accepting the U.S. Army's speclal order