Andretti Company has a single product called a Dak. The company normally produces and sells 83,000 Daks each year at a selling price of $64 per unit. The companys unit costs at this level of activity are given below:

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?

5. An outside manufacturer has offered to produce 83,000 Daks and ship them directly to Andrettis customers. If Andretti Company accepts this offer, the facilities that it uses to produce Daks would be idle; however, fixed manufacturing overhead costs would be reduced by 30%. Because the outside manufacturer would pay for all shipping costs, the variable selling expenses would be only two-thirds of their present amount. What is Andrettis avoidable cost per unit that it should compare to the price quoted by the outside manufacturer?

$ 9.50 Direct materials Direct labor 11.00 Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses 3.30 4.00 ($332,000 total) 1.70 3.50 ($290,500 total) Total cost per unit $33.00 Complete this question by entering your answers in the tabs below. Req 1B Req 1A Req 2 Req 3 Req 4A to 4C Req 4D Req 5 The company has 600 Daks on hand that have some irreqularities 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.) Relevant unit cost per unit Req 2 Req 4A to 4C Complete this question by entering your answers in the tabs below. Req 1B Req 2 Req 5 Req 1A Req 3 Req 4A to 4C Req 4D An outside manufacturer has offered to produce 83,000 Daks and ship them directly to Andretti's customers. If Andretti Company accepts this offer, the facilities that it uses to produce Daks would be idle; however, fixed manufacturing overhead costs would be reduced by 30%. Because 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 decimal places.) Show less Avoidable cost per unit KReq 4D Req 5