9.00 2.00 1.70 1-5 2 Andrate Company has a single product called Dok. The company normally produces and tel 86,000 Doks each year atseling price of $62 per unit. The company's unit costs at this level of activity are given below Direct materials $7.50 Direct labor Variable manufacturing overhead Faed manufacturing overhead 6.00 (5516.000 Variable selling expenses Fixed selling expenses 3.00 (5258,000 total Total cost per unit 5 29.20 A number of questions relating to the production and sale of Daks fotow. Each question is independent Required: 1a Assume that Andretti Company has sufficient capacity to produce 120,400 Daks each year without any increase in fed manufacturing overhead costs. The company could increase its unit sales by 40% above The word ons na die res van der Waren nedre lo merece the land selling expenses by $140,000, what is the financial advantago lanadvantage of investing an additonas $140,000 in toad saling expenses? 3. The through regular 4 setting a minimum seling price? to purchase more material for the production of Daks. The strike is expected to last for two months. Andretti Company has enough material on continue at 30% of their two-period and the How much total contribution marginwill Andretti forgolt closes the plant for two months b. How much total fixed cost will the company avoid if closes the plant for two months Wanaume Andreould cose plant down only for the two montant more of actug ocemente What is the financial advantage disadvantage) of closing the plant for the two-month period? d. Should Andretti con the plant for two months? 5. An outside manufacturer has offered to produce 86,000 Daks and ship them directly to Andretti's customers, it Andrem Company cops this offer the facilities that it uses to produce Daka would be de, however, fixed manufacturing overhead costs would be reduced by 30%. Because the outside manufacturer would pay for all shipping cost the variable selling expenses would be only two-thirds of their presentamount What is Andre's avoidable cost per unit that it should compare to the price quoted by the outside manutacturer? Complete this question by entering your answers in the tabs below. Red LA Reg 10 Reg 2 Reg Reg 4 to 4C Req4D Reqs Assume that Andretti Company has sufficient capacity to produce 120,400 Daks each year without any increase in foved manufacturing overhead costs. The company could increase its unit sales by 40% above the present 86,000 units each year it it were willing to increase the fixed selling expenses by $140,000. What is the financial advantage (disadvantage) of investing an additional $140,000 in fixed selling expenses