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 $$58$ per unit. The company$$s unit costs at this level of activity are given below:

Direct materials $ $8\mathrm{.}50$

Direct labor $9\mathrm{.}00$

Variable manufacturing overhead $2\mathrm{.}00$

Fixed manufacturing overhead $8\mathrm{.}00($$$656,000$ total$)$

Variable selling expenses $4\mathrm{.}70$

Fixed selling expenses $3\mathrm{.}50($$$287,000$ total$)$

Total cost per unit $ $35\mathrm{.}70$

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 $102,500$ Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by $25\%$ above the present $82,000$ units each year if it were willing to increase the fixed selling expenses by $$140,000.$ What is the financial advantage $($disadvantage$)$ of investing an additional $$140,000$ in fixed selling expenses?

$1-$b$.$ Would the additional investment be justified?

$2.$ Assume again that Andretti Company has sufficient capacity to produce $102,500$ Daks each year. A customer in a foreign market wants to purchase $20,500$ Daks. If Andretti accepts this order it would have to pay import duties on the Daks of $$3\mathrm{.}70$ per unit and an additional $$14,350$ for permits and licenses. The only selling costs that would be associated with the order would be $$2\mathrm{.}10$ per unit shipping cost. What is the break$-$even price per unit on this order?

$3.$ The company has $900$ Daks on hand that have some irregularities and are therefore considered to be "seconds." Due to the irregularities, it will be impossible to sell these units at the normal price through regular distribution channels. What is the unit cost figure that is relevant for setting a minimum selling price?