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Andretti Company has a single product called a Dak. The company normally produces and sells 82,000 Daks each year at a selling price of $44

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Andretti Company has a single product called a Dak. The company normally produces and sells 82,000 Daks each year at a selling price of $44 per unit. The company's unit costs at this level of activity level of activity are given below: A number of questions relating to the production and sale of Daks follow. Each question is independent. Assume that Andretti Company has sufficient capacity to produce 114, 800 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 40% above the present 82,000 units each year if it were willing to increase the fixed selling expenses by $150,000. Calculate the incremental net operating income. Would the increased fixed selling expenses be justified? Yes No Assume again that Andretti Company has sufficient capacity to produce 114, 800 Daks each year. A customer in a foreign market wants to purchase 32, 800 Daks. Import duties on the Daks would be $3.70 per unit, and costs for permits and licenses would be $26, 260. The only selling costs that would be associated with the order would be $2.40 per unit shipping cost. Compute the per unit break-even price on this order. The company has 700 Daks on hand that some irregularities and are therefore conside4red to be 'seconds'. Due to the irregularities, it will be impossible to sell these units at the normal price thought regular distribution channels. What unit cost figure is relevant for setting a minimum selling price

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