Andretti Company has a single product called a Dak. The company normally produces and sells 88,000 Daks each year at a selling price of $56 per unit. The company's unit costs at this level of activity are given below: 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 114,400 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 30% above the present 88,000 units each yoarif it were willing to increase the fixed selling expenses by $110,000. What is the financial adventage (disadvantage) of linvesting an adaitional $110,000 in fixed selling expenses? 1-b. Would the additional investment be justiflod? 2. Assume again that Andretti Company has sufficient capacity to produce 114,400 Daks each yeat. A customer in of foreign matket wants to purchase 26,400 Daks. If Andretti accepts this order it would hove to pay impoit dut es on the Daks of $370 per init apd ait additional $15,840 for permits and licenses. The only selling costs that would be associated with the cider would be $210 por unit shipping cost. What is the break-even price per unit on this order? 3. The company has 700 Daks on hand that have some iregularities and are therofore considorcd to be seconds. Due to the Ifregularities, it will be impossible to sell these units at the nermal price througb regular distribution channels. Whot is tho ithit cast figure that is relevant for setting a minimum selling price? 4. Due to a strike in its supplier's piant, Andrett Company is unable to purchase more matefial for the producton of Daks. The strike is period. As an alternative, Andretti could closo its plant down ontirely for the two months is the plat wore closed, nxcod menstactuting overhead costs would continue at 35\% of their norma lovel during the two-month poriod and the fixed solling oxponses would be reduced bu 2016 during the two-month oetiod