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Andretti Company has a single product called a Dak. The company normally produces and sells 81,000 Daks each year at a selling price of $46

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Andretti Company has a single product called a Dak. The company normally produces and sells 81,000 Daks each year at a selling price of $46 per unit. The company's unit costs at this level of activity are given below Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses S 6.50 12.00 2.70 5.00 (S405,000 total) 3.70 5.50 ($445,500 total) Total cost per unit S 35.40 A number of questions relating to the production and sale of Daks follow. Each question is independent 1-a. Assume that Andretti Company has sufficient capacity to produce 97,200 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 20% above the present 81,000 units each year if it were willing to increase the fxed selling expenses by $150,000. Calculate the incremental net operating income. (Round all dollar amounts to 2 decimal places.) Increased sales in units Contribution margin per unit Incremental contribution margin Less added fixed selling expense Incremental net operating income 1-b. Would the increased fixed selling expenses be justified? Yes No 2. Assume again that Andretti Company has sufficient capacity to produce 97,200 Daks each year. A customer in a foreign market wants to purchase 16,200 Daks. Import duties on the Daks would be $3.70 per unit, and costs for permits and lioenses would be $12,960. The only selling costs that would be associated with the order would be $1.60 per unit shipping cost Compute the per unit break-even price on this order. (Round your answers to 2 decimal places.) Variable manufacturing cost per unit Import duties per unit Permits and licenses Shipping cost per unit Break-even price per unit

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