Problem 12-22 Special Order Decisions (L012-4) Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 30,000 Rets per year. Costs associated with this level of production and sales are given below. Unit $ 20 3 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Total cost Total $ 600,000 180, eee 90,000 210, eee 120,000 180, eee $1,380,000 46 The Rets normally sell for $51 each. Fixed manufacturing overhead is $210,000 per year within the range of 22,000 through 30,000 Rets per year. sects to sell only 16% discount of recer, polaski Comput0. Polask! Required: 1. Assume that due to a recession, Polaski Company expects to sell only 22,000 Rets through regular channels next year. A large retail chain has offered to purchase 8,000 Rets if Polaski is willing to accept a 16% discount of 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 8,000 units. This machine would cost $16,000. Polaski Company has no neurance that the retail chain will nurchase additional inits in the future What is the financial advantaor Idiartvantanel of