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Andretti Company has a single product called a Dak. The company normally produces and sells 89,000 Daks each year at a selling price of
Andretti Company has a single product called a Dak. The company normally produces and sells 89,000 Daks each year at a selling price of $56 per unit. The company's unit costs at this level of activity are given below: Direct materials Direct Labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit $8.50 9.00 2.80 6.00 ($534,000 total) 4.70 4.00 ($356,000 total) $ 35.00 A number of questions relating to the production and sale of Daks follow. Each question is independent.
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