Andretti Company has a single product called a Dak. The company normally produces and sells 80,000 Daks each year at a selling price of $58 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 Total cost per unit $ 6.50 11.00 3.50 7.00 ($560,000 total) 2.70 4.80 ($320,000 total) $34.70 A number of questions relating to the production and sale of Daks follow. Each question is independent. Required: 1-a. Assume that Andretti Company has sufficient capacity to produce 108,000 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 35% above the present 80.000 units each year if it were willing to increase the fixed selling expenses by $150,000. What is the financial advantage (disadvantage) of investing an additional $150,000 in fixed selling expenses? 1-b. Would the additional investment be justified? 2. Assume again that Andretti Company has sufficient capacity to produce 108,000 Daks each year. A customer in a foreign market wants to purchase 28,000 Daks. If Andretti accepts this order it would have to pay import duties on the Daks of $2.70 per unit and an additional $25,200 for permits and licenses. The only selling costs that would be associated with the order would be $2.80 per unit shipping cost. What is the break-even price per unit on this order? Complete this question by entering your answers in the tabs below. Req5 Req 1A Req 1B Reg 2 Req3 Req 4A to 4C Reg 4D Red. An outside manufacturer has offered to produce 80,000 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 30%. 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 that it should compare to the price quoted by the outside manufacturer? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Show less Avoidable cost per unit