12.5 7 points Andretti Company has a single product called a Dak The company normaly produces and sells 81,000 Daks each year at a selleg price of $58 per unit. The company's unit costs at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit $7.50 11.00 2.20 9.00 ($729,000 total) 1.70 4.00 ($324,000 total) $35.40 A number of questions relating to the production and sale of Daks follow. Each question is independent Required: 13. Assume that Andretti Company has sufficient capacity to produce 105,300 Daks each year without any increase in tied manufacturing overhead costs. The company could increase its unit sales by 30% above the present 81.000 units each year if it were willing to increase the fixed selling expenses by $120,000 What is the financial advantage (disadvantage) of investing an additional $120.000 in fixed selling expenses? 1-b. Would the additional investment be justified? 2. Assume again that Andretti Company has sufficient capacity to produce 105.300 Daks each year. A customer in a foreign market wants to purchase 24,300 Daks. If Andrett accepts this order it would have to pay import duties on the Daks of $370 per unit and an additional $19,440 for permits and licenses. The only selling costs that would be associated with the order would be $1.50 per unit shipping cost. What is the break-even price per unit on this order? 3. The company has 500 Daks on hand that have some irregularities and are therefore considered to be 'seconds" Due to the Irregularities, it will be impossible to sell these units at the normal price through regular distribution channels. What is the unit cost figure that is relevant for setting a minimum selling price?