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3 Birch Company normally produces and sells 49,000 units of RG-6 each month. The selling price is $20 per unit, variable costs are $10 per

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3 Birch Company normally produces and sells 49,000 units of RG-6 each month. The selling price is $20 per unit, variable costs are $10 per unit, fixed manufacturing overhead costs total $180,000 per month, and fixed selling costs total $38,000 per month. Employment-contract strikes in the companies that purchase the bulk of the RG-6 units have caused Birch Company's sales to temporarily drop to only 10,000 units per month. Birch Company estimates that the strikes will last for two months, after which time sales of RG-6 should return to normal. Due to the current low level of sales, Birch Company is thinking about closing down its own 23plant during the strike, which would reduce its fixed manufacturing overhead costs by $46,000 per month and its fixed selling costs p costs at the end of the shutdown period would total $13,000. Because Birch Company uses Lean Production by 10%. Start-u methods, no inventories are on hand Requir What is the financial advantage (disadvantage) if Birch closes its own plant for two months? 1. 2. Should Birch close the plant for two months? 3. At what level open? f unit sales for the two-month period would Birch Company be indifferent between closing the plant or keeping it Complete this question by entering your answers in the tabs below Required 3 Required 1Required 2 What is the financial advantage (disadvantage) if Birch closes its own plant for two months? methods, no inventories are on hand. 3 Required 1. What is the financial advantage (disadvantage) if Birch closes its own plant for two months? 2. Should Birch close the plant for two months? 3. At what level of unit sales for the two-month period would Birch Company be indifferent between closing the plant or keeping it open? 010218 Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Required 1 What is the financial advantage (disadvantage) if Birch closes its own plant for two months? Required 2> Required: 1. What is the financial advantage (disadvantage) if Birch closes its own plant for two months? 2. Should Birch close the plant for two months? 3. At what level of unit sales for the two-month period would Birch Company be indifferent between closing the plant or keeping it open? 01015) Complete this question by entering your answers in the tabs below complete Required 1 Requred 2 Required3 Should Birch close the plant for two months? OYes No Required Required 3> Required: 1. What is the financial advantage (disadvantage) if Birch closes its own plant for two months? 2. Should Birch close the plant for two months? 3. At what level of unit sales for the two-month period would Birch Company be indifferent between closing the plant or keeping it open? 010118 Complete this question by entering your answers in the tabs below Required 1Required 2Required) At what level of unit sales for the two-month period would Birch Company be indifferent between closing the plant or keeping it open?

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