Polaskl Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 58,000 Rets per year. Costs assoclated with this level of production and sales are as follows: The Rets normally sell for $90 each. Fixed manufacturing overhead is constant at $1,102,000 per year within the range of 33,000 through 58,000 Rets per year. Required: 1. Assume that, due to a recession, Polaskl Company expects to sell only 33,000 Rets through regular channels next year. A large retall chain has offered to purchase 25,000 Rets If Polaskl Is willing to accept a price lower than the regular $90. There would be no sales commissions on this order, thus, varlable selling expenses would be slashed by 75%. However. Polaski Company would have to purchase a speclal machine to engrave the retall chaln's name on the 25,000 units. This machine would cost $50,000. PolaskI Company has no assurance that the retall chain will purchase addltional units any time in the future. Determine the maximum discount that Polaskl can offer to this large retall chain in order for it to be no worse off compared to its current profit. (Do not round Intermedlate calculatlons. Round your percentage answer to nearest whole number.) ('suo|10|n|8> 3. Assume agaln that Polaskl Company expects to sell only 58,000 Rets through regular channels next year. The Canadian Forces would like to make a one-time-only purchase of 25,000 Rets. The Forces would pay a fixed fee of $3.50 per Ret, and In addition would relmburse PolaskI Company for all costs of productlon (varlable and fixed) assoclated with the units. Thus, accepting the Canadian Forces' order would require giving up regular sales of 25,000 Rets. SInce the Forces would pick up the Rets with its own trucks, there would be no varlable selling expenses of any type assoclated with this order. Compute the minimum fixed fee per unit that Polaski must recelve from the Canadian Forces (In addltion to the reImbursement of production costs) in order to accept this order. (Do not round Intermedlate calculations.)