Andrett Company has a single product called a Dak. The company normally produces and sells 88,000 Daks each year at a selling price of $60 per unit. The compahy's unit costs at this level of activity are given below. A number of guestions relating to the production and sale of Daks follow Each question is independent: Required: 1a. Assume Andretti Company has sufficient capacity to produce 105,600 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 20% above the present 88,000 units each year if it increased foxed seling expenses by $140,000 What is the financial advantage (disadvantage) of investing an additional $140,000 in foxed seling experises? 16. Would the additonal investment be justified? 2 Assume Andretti Company has sulficient capacity to produce 105,600 Daks each year. A customer in a foreign market wants to purchase 17,600 Daks. If Andretti accepts this order, it would pay import duties on the Daks of $1,70 per unit and an additional $15,840 for permits and licenses. The only selling costs associated with the order would be $190 per unit shipping cost. What is the breakeven price per unit on this order? 3. The company has 500 Daks on hand wath some iregulantes that make it impossible to sell them at the normal price through regular distribution channels. What unit cost figure is relevant for setting a minimum seling price to liquidate these unuts? 4. Due to as strike in its supplier's plant. Andretti Company is unable to purchase more material for the production of Daks The strike is expected to last for two months. Andretti Company has enough material on hand to operate at 25% of normal levels for the two-month period. As an alternative. Andretti could close its plant down entirely for the two months. If the plant were closed, foxed manufacturing overhead costs would continue of 35% of their normal level during the fwo-month period and the fored selling expenses would be reduced by 20% during the two-month period. a. How much total contribution margin wil Andretti forgo if it closes the plant for two months? b. How much total fixed cost will the company avoid if it closes the plant for two months? c. What is the financial advantage (disadvantage) of dosing the plant for the two-month period? d Should Andretti close the plant for two months? Assume Andretti Company has sufficient capacity to produce 105,600 Daks each year without any increase in fixced manufacturing overhead costs. The company could increase its unit sales by 20% above the present 88,000 units each year if it increased fixed selling expenses by $140,000. Would the additional investment be justified? Assume Andretti Company has sufficient capacity to produce 105,600 Daks each year. A customer in a foreign market wants to purchase 17,600 Daks, If Andrettl accepts this order, it would pay import duties on the Daks of $1.70 per unit and an additional $15,840 for permits and licenses. The only selling costs associated with the order would be $1.90 per unit shipping cost. What is the break-even price per unit on this order? Note: Round your answers to 2 decimal places. Complete this question by entering your answers in the tabs below. The company has 500 Daks on hand with some irregularities that make it impossible to sell them at the normal price through regular distribution channels. What unit cost figure is relevant for setting a minimum selling price to liquidate these units? Note: Round your antwer to 2 decimal places. Complete this question by entering your answers in the tabs below. Due to a strike in its supplier's plant, Andretti Company is unable to purchase more material for the production of Daks. The strike is expected to last for two months. Andretti Company has enough material on hand to operate at 25% of normal levels for the two-month period. As an alternative, Andretti could close its plant down entirely for the two months. If the plant were closed, fixed manufacturing overhead costs would continue at 35% of their normal level during the two-month period and the fixed selling expenses would be reduced by 20% during the two-month period. Note: Round number of units produced to the nearest whole number. Round your intermedlate calculations and final answers to 2 docimat places. Any losses or redtuctions should be indicated by a minus sign. a. How much total contribution margin will Andretti forgo if it closes the plant for two months? b. How much total fixed cost will the company avoid if it closes the plant for two months? c. What is the finandal advantage (disadvantage) of closing the plant for the two-month period? Complete this question by entering your answers in the tabs below. Due to a strike in its supplier's plant, Andretti Company is unable to purchase more material for the production of Daks. The strike is expected to last for two months. Andretti Company has enough material on hand to operate at 25% of normal levels for the two-month period. As an alternative, Andretti could close its plant down entirely for the two months. If the plant were closed, fixed manufacturing overhead costs would continue at 35% of their normal level during the two-month period and the fixed selling expenses would be reduced by 20% during the two-month period. Should Andretti close the plant for two months? Complete this question by entering your answers in the tabs below. An outside manufacturer offered to produce 88,000 Daks and ship them directly to Andretti's customers. If Andretti Company accepts this offer, the facilities that it uses to produce Daks would be idle; however, fixed manufacturing overhead costs would be reduced by 75%. Because the outside manufacturer would pay for all shipping costs, the variable selling expenses would be only two-thirds of their present amount. What is. Andretti's avoidable cost per unit it should compare to the price quoted by the outside manufacturer? the outside manufacturer? Note: Do not round intermediate calculations. Round your answers to 2 decimal places