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 materiais Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit $ 7.50 10.00 2.50 7.00 (5633,000 total) 1.70 2.00 (5267,000 total) $31.00 A number of questions relating to the production and sale of Daks follow. Each question is independent Required: 12 Assume that Andretti Company has sufficient capacity to produce 115 700 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 30% above the present 89,000 units each year if it were willing to increase the fiwed selling expenses by $120,000. What is the financial advantage (disadvantage) of investing an additional $120,000 in fixed selling expenses? 1-5 Would the additional investment be justified? 2. Assume again that Andretti Company has sufficient capacity to produce 115 700 Daks each year A customer in a foreign market wants to purchase 26 700 Daks. Il Andietti accepts this order it would have to pay import duties on the Daks of $270 per unit and an additional $15,020 for permits and licenses. The only selling costs that would be associated with the order would be $2.00 per unit shipping cost What is the break-even price per unit on this order? 3. The company has 600 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? 4. Due to a strike in its suppliers plant. Andretti Company is unable to purchase more material for the production of Daks the strikes expected to last for two months Andretti Company has enough material on and to operate at 25% of normal levels for the two month penod. As on alternative Andrett could case its plot down entirely for the two months. If the plant were closed fred manufacturing overhead costs would continue at 35% of their namat level during the two-month period and the fived selling expenses would be reduced by 20% during the two-month period How much total contribution margin will Andretti forgo fit closes the plant for two months b. How much total tooed cost will the company avoid if it closes the plant for two months c. What is the financial advantage disadvantage) of closing the plant for the two-month period? d. Should Andretti close the plant for two months 5. An outside manufacturer nas altered to produce 89000 Doland het deegly to andrets customers. If Andretti Comparty accepts this offer the facilities that uses to produce Dakt would be ide: however, foxed manufacturing overhead reduced by 30%. Because the outside manufacturer would pay for whipping cost the variable selling expenses would be only two thirds of their present amount Wat is Andretti's avoidable cost per unit that it should compare to the price quoted by the outside manat Complete this question by entering your answers in the tabs below. Reg 3 Reg 4A L 40 Reg 40 Reg 5 Reg 1A Reg 1B Reg 2 Assume that Andrett Company has sufficient capacity to produce 115,700 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 30% above the present 89,000 units each year ir it were willing to increase the foxed selling expenses by $120.000. What is the financial advantage (disadvantage of investing an additional $120,000 in fixed selling expenses? Show less Complete this question by entering your answers in the tabs below. Req3 Rea 2 Reg 4 to 40 Reg 40 RIA Reg 5 Red Assume that Andretti Company has sufficient capacity to produce 115,700 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 30% above the present 89,000 units each year ir It ware willing to increase the fixed selling expenses by $120,000. Would the additional Investment be justified? Yes NO Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2 Reg 3 Reg 4A to 40 Reg 40 Regs Assume again that Andretti Company has sufficient capacity to produce 115,700 Daks each year. A customer in a foreign market wants to purchase 26,700 Daks. If Andretti accepts this order it would have to pay import duties on the Daks of $2.70 per unit and an additional $16,020 for permits and licenses. The only selling costs that would be associated with the order would be $2.00 per unit shipping cost. What is the break even price per unit on this order? (Round your answers to 2 decimal places) Show less Brownice per un Complete this question by entering your answers in the tabs below. Reg RG 2 Reg 4 to 40 Reg 4D Reg 1 Reg 16 Reg 5 The company has 600 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 (Round your answer to 2 decimal places) per un Revant un Den AA to Complete this question by entering your answers in the tabs below. Reg 1A Reg 13 Reg 2 Rego Reg A to 40 Re 40 Reg 5 Due to a strike in its supplier's plant, Andrett Company is unable to purchase more material for the production of Daks. The strike is expected to last for two months. Andretti Company has enough material on hand to operate at 25% of normal levels for the two month period. As an alternative, Andretti could close its plant down entirely for the two months. If the plant were closed, fixed manufacturing overhead costs would continue at 35% of their normal level during the two month period and the Fixed selling experises would be reduced by 20% during the two-month period. (Round number of units produced to the Wested whole number. Round your intermediate calculations and answers to 2 decimal places, Any lonewroductions should be indicated by a minus sign) a. How much total contribution margin will Andretti Forgo if it closes the plant for two months b. How much total fixed cost will the company avoid if it closes the plant for two months What is the financial advantage (disadvantage) of closing the plant for the two-month period Show less Forgone contribution margin Total voldate fixed costs Financial advantage disadvantage) Complete this question by entering your answers in the tabs below. Reg 1B Reg 2 Reg Reg 4 to 40 Reg 1A Reg 4D Reg 5 Due to a strike in its supplier's plant, Andretti Company is unable to purchase more material for the production of Daks, The strike is expected to last for two months. Andretti Company has enough material on hand to operate at 25% of normal levels for the two month period. As an alternative, Andretti could do it plant down entirely for the two months. If the plant were closed, fixed manufacturing overhead costs would continue at 25% of the normal level during the two month period and the fixed selling expenses would be reduced by 20% during the two month period. Should Andretti close the plant for two months Show less OY Complete this question by entering your answers in the tabs below. Reg 13 Reg 3 Reg 4 to 4 Reg 40 Rig 5 RIA An outside manutacturer has offered to produce 89,000 Daks and ship them directly to Andretti's customers. If Andretti Company accepts this offer, the fadities that it uses to produce Daks would be idle, however, fixed manufacturing overhead costs would be reduced by 30%. Decause 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 tedna pl Show less Abidstils o por un