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Andrett Company has a single product called a Dak. The company normally produces and sells 90,000 Daks each year at a selling price of $82

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Andrett Company has a single product called a Dak. The company normally produces and sells 90,000 Daks each year at a selling price of $82 per unit. The company's unit costs at this level of activity follow Direct materials Direct labour Variable manufacturing overhead Faced manufacturing overhead Variable selling expenses Fored selling expenses $20.00 14.50 1230 5.00 $450,000 total 3.50 $315,000 total Total cost per unit $50 50 A number of questions relating to the production and sale of Daks follow. Consider each question separately Required: 1. Assume that Andretti Company has sufficient capacity to produce 150,000 Daks every year without any increase in foed manufacturing overhead costs. The company could increase its sales by 25% above the present 90.000 units each yearfi were willing to increase the foed selling expenses by $31250 a. Calculate the incremental net operating income. (Do not round intermediate calculations. Incremental net operating income b. Would the increased foxed expenses be justified? Yes O No 2. Assume again that Andretti Company has sufficient capacity to produce 150.000 Daks every year. A Customer in a foreign market wants to purchase 30.000 Daks Import duties on the Daks would be $3.10 per unit and costs for permits and licences would be $13.500. The only selling costs that would be associated with the order would be $8 20 pers one cost. Compute the ponunt broken rice on this order Do not found intermediate ecuaton Round your answer to 2 decimal places) Break-even price per r 3. The 2000 as on hand the seconds D o be att bohannes What unit cost for Round your answer to 2 decimal places.) se these at forson efore considered to be orice through inum serce

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