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Andretti Company has a single product cabed a Dak. The company normaty produces and sets BD 000 Daks each year at a selang price of

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Andretti Company has a single product cabed a Dak. The company normaty produces and sets BD 000 Daks each year at a selang price of 560 per unit. The companys unit costs at this level of activity are given beliow A number of questions relating to the production and sale of Daks follow. Each question is independent. Aequired: 1a Asrume that Andretti Company has sufficent capscity to produce 104,000 Dabs each year without any increase in tiked manulacturing overhead costs. The company could increase its unit sales by 30% above the presens 80.000 units each year if it were willing to increase the foved seling expenses by $130,000. What is the towalal advantage (disadvantage) of imesting an additional StBopoorin fued sesing expenses? 10. Whild the additiond investment be justified? 2 Assame agart that Angrets Company has sumcent capacty 10 produce 104,000 Daks each year A costomet in a foreign makkt waits to purchase 24,000 Daks. If Andrett accepts this ordes a would tuve to pay umport duties oa the Dats of 5370 per une and an additionat 514,400 for permits and icenses. The only seming costs that would be assocated with the oider would be $220 per untt shipping cost What is the break-even pnce per unit on this order? 2. The company has 600 Daks on hand that have some arequiarties and are therefore considered to be Yeconds "Due to the figure that is relevant for setsng a minirmuen seing price? 4 Due to a strs et in its supgeers plam, Avirets Company is unable to purchase more muterial for the production of Daks The strae is pentad As an aternatve, Andett could cole is plant down entively for the two months if the plant were closed, foed monufacturing feduced by 200 diring the two month period 5. Al outude manuracturer fus onered to produce 80000 Ooks and ship them directy to Andrettis customers it Andietti Compary leduced by 30x oecase the ovtaide mararactuter would pay tor all shppeng costs, the vallable seting expenses woisd be only twomansficturer? 2. How much total contribibon may get wil Anareti forgo if it coses the panil for two mondfs? b. How misch total furd cost will the company avole if il closes the piant for two months? c. What it the franclal atvantage jaisadvantage, of closing the pant for the fwo manth penod? d1 Shouid Andiefti dose the plant for two montris? Camblete thas question by entering vour answers in the tabs below

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