Problem 9-5 Determining Whether to Accept or Reject a Special Order (LO1 - CC5) Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce an 52,000 Rets per year. Costs associated with this level of production and sales are as follows: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Total cost Unit $ 23.50 16.50 Total $1,222,000 858,000 11.50 598,000 17.50 910,000 4.00 208,000 6.00 $79.00 312,000 $4,108,000 The Rets normally sell for $84 each. Fixed manufacturing overhead is constant at $910,000 per year within the range of 30 through 52,000 Rets per year. Required: 1. Assume that, due to a recession, Polaski Company expects to sell only 30,000 Rets through regular channels next year. chain has offered to purchase 22,000 Rets if Polaski is willing to accept a price lower than the regular $84. There would be commissions on this order; thus, variable selling expenses would be slashed by 75%. However, Polaski Company would ha purchase a special machine to engrave the retail chain's name on the 22,000 units. This machine would cost $44,000. Pol Company has no assurance that the retail chain will purchase additional units any time in the future. Determine the maxim that Polaski can offer to this large retail chain in order for it to be no worse off compared to its current profit. (Do not round intermediate calculations. Round your percentage answer to nearest whole number.) Maximum discount %