Question 3 (20 points) Question based on modified problems 3.3 from the reference text [Flynn (2009)] from page 78 of the textbook Polymerco, a North American manufacturer of specialty polymers, has the following highly condense income statement, given in the table below. There current sales are to North American customers only. The president casually mentions that it would be nice to have more offshore sales to diversity the company Polymerco Income Statement This year (S000) Last year (S000 25,421 24,224 Gross sales Bad debt Nil ni 25,421 24,224 Net sales COGS 22,243 21,341 2,883 Contribution margin 3,178 (%) 12.5 CM 11.9 2,122 1,056 2,067 SG&A 816 Operating income Other income and interest on long-term debt 60 -50 Net income 996 766 What are your recommendations for the following situations? Do you have any concern? (a) if Polymerco's production is running at 84% capacity. (10 points)