Problem 13-22 (Algo) Special Order Decisions [LO13-4] Polaski Company manufactures and selis a single product calnd a Ret, Operating at capacity, the company can peoduce and sell 44.000 Rets per year, Cests associated with this level of peoduction and sales are given below. The Pets nomally seli for $49 each. Fixed manufacturing owethead is $308,000 per year within the range of 35,000 through 44,000 Rets per year. Aequired: 1 Assume that due to a recession. Polasis Cempany expects to sell onty 35.000 Rots through reoular channels next year. A iarge retal chain has offered to purchase 9.000 Pets if Polask is willing to accept a 16% discount of the regular price. There would be no sales purchase a special machine to engrave the retal chain's name on the 9.000 unts. This machine Would cost $18,000. Polaski Company acceptine the special order? (Pound your intermediate calculations to 2 decimal places) 2 Befer to the orfinal data. Assume again that Polask Company expects to seli only 35,000 Rets through regular channeis next year The US. Army would like to make a one-time-only purchase of 9.000 Rets. The Army would reimburse Polaski for all of the variable and fixed production costs assigned to the units by the company/s absorpticn costing system, plus it would pay an adselonal fee of $140 per unit. Recause the army would pick up the Ress with is own trucks, there would be no variable selling expenses associated with this ordec What is the financial advantage (dodvantage) of eccepting the US Army/s special order? 3. Assume the same sisuation as descibed in (2) above, except that the company oxpects to sell 44,000 Rets through regular channeis nextyear Thus, accepting the U.5. Army's order would require giving up regular sales of 9.000 . Rets. Given this new information, what is the financial advantage (distvartage) ol accepting the US. Atroy's special order