The Rets normally sell for $$60$ each. Fixed manufacturing overhead is $$306,000$ per year within the range of $27,000$ through $34,000$ Rets per year.

Required:

$1.$ Assume that due to a recession, Polaski Company expects to sell only $27,000$ Rets through regular channels next year. A large retail chain has offered to purchase $7,000$ Rets 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 $75\%.$ However, Polaski Company would have to purchase a special machine to engrave the retail chain$$s name on the $7,000$ units. This machine would cost $$14,000.$ Polaski Company has no assurance that the retail chain will purchase additional units in the future. What is the financial advantage $($disadvantage$)$ of accepting the special order? $($Round your intermediate calculations to $2$ decimal places.$)$

$2.$ Refer to the original data. Assume again that Polaski Company expects to sell only $27,000$ Rets through regular channels next year. The U$.$S$.$ Army would like to make a one$-$time$-$only purchase of $7,000$ Rets. The Army would reimburse Polaski for all of the variable and fixed production costs assigned to the units by the company$$s absorption costing system, plus it would pay an additional fee of $$1\mathrm{.}40$ per unit. Because the army would pick up the Rets with its own trucks, there would be no variable selling expenses associated with this order. What is the financial advantage $($disadvantage$)$ of accepting the U$.$S$.$ Army's special order?

$3.$ Assume the same situation as described in $(2)$ above, except that the company expects to sell $34,000$ Rets through regular channels next year. Thus, accepting the U$.$S$.$ Army$$s order would require giving up regular sales of $7,000$ Rets. Given this new information, what is the financial advantage $($disadvantage$)$ of accepting the U$.$S$.$ Army's special order?