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Andrett Company has a single product called a Dak. The company normally produces and sells 93,000 Daks each year at a selling price of $64

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Andrett Company has a single product called a Dak. The company normally produces and sells 93,000 Daks each year at a selling price of $64 per unit. The company's unit costs at this level of activity follow: A number of questions relating to the production and sale of Daks follow. Consider each question separately 3. The company has 2,100 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 channeis. What unit cost figure is relevant for setting a minimum selling price? (Round your answer to 2 decimol places.) 4. Due to a strike in Its supplier's plant, Andretti Company is unable to purchase more materiais for the production of Daks. The strike is expected to last for two months. Andretti Company has enough materlals on hand to contunue to operate at 30% of normal leveis for the two-month period. As an alternative. Andretti could close its plant down entirely for the two months. If the plant were ciosed, all fixed costs would continue at 50% of theirnormal level during the two-month period What would be the dollar advantage or disadvantage of closing the plant for the fwo-month penod? (Do not round Intermediate calculations.) Answer is complete but not entirely correct. 5. An outside manufacturer has offered to produce Daks for Andieti Company and to ship them directiy to Andrett's customers. If Andrett Company accepts this offer, the facilities that it uses to produce Daks would be idle; however, fired overhead costs would be reduced by 75% of their present level Since the outside manufacturer would pay all the costs of shipping. the varlable seling costs would be only two-thirds of their present amount Compute the unit cost figure relevant for comparison to whatever quoted price is received from the outside manufacturer. (Do not round Intermedlate calculations. Round your answer to 2 decimal places.) Answer is complete but not entirely correct

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