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 ($000) Last year ($000) Gross sales 25746 24101 Bad debt nil nil 25746 24101 Net sales COGS Contribution margin 22,243 21,341 3503 2760 CM(%) 13.6% 11.5% SG&A 2,122 2,067 1381 693 Operating income Other income and interest on long-term debt -60 -50 Net income 1321 643 (a) if Polymerco's production is running at 84% capacity, what is the maximum discount in percentage that you can provide? Maximum discount= 1 % In this case, will you have a negative impact on the profitability of the business? No (b) if Polymerco's production is running at 100% capacity, how much percentage of discount can you provide without reducing the profitability? %