Andrettl Company has a single product called a Dak. The company normally produces and sells 86,000 Daks each year at a selling price of \\( \\$ 60 \\) per unit. The company's unlt costs at this level of actlvity are given below: A number of questions relating to the production and sale of Daks follow. Each question is independent. Required: 1-a. Assume that Andrettl Company has sufficlent capacity to produce 116,100 Daks each year without any Increase In fixed manufacturing overhead costs. The company could Increase Its unlt sales by \35 above the present 86,000 units each year if It were Willing to Increase the fixed selling expenses by \\( \\$ 110,000 \\). What is the financlal advantage (disadvantage) of Investing an additional \\( \\$ 110,000 \\) in fixed selling expenses? 1-b. Would the additional Investment be justified? 2. Assume agaln that Andrettl Company has sufficlent capacity to produce 116,100 Daks each year. A customer In a forelgn market wants to purchase 30,100 Daks. If Andrettl accepts this order It would have to pay Import dutles on the Daks of \\( \\$ 4.70 \\) per unlt and an additional \\( \\$ 15,050 \\) for permits and licenses. The only selling costs that would be assoclated with the order would be \\( \\$ 1.80 \\) per unit shipping cost. What is the break-even price per unlt on this order? 3. The company has 800 Daks on hand that have some Irregularltles and are therefore considered to be \"seconds.\" Due to the Irregularitles, It will be impossible to sell these units at the normal price through regular distribution channels. What is the unlt cost figure that is relevant for settling a minmum selling price? 4. Due to a strike in Its supplier's plant, Andrettl Company is unable to purchase more materlal for the productlon of Daks. The strike is expected to last for two months. Andrettl Company has enough materlal on hand to operate at \25 of normal levels for the two-month perlod. As an alternative, Andrettl could close Its plant down entirely for the two months. If the plant were closed, fixed manufacturlng overhead costs would continue at \35 of their normal level during the two-month perlod and the fixed selling expenses would be reduced by \20 during the two-month period. a. How much total contribution margin will Andrettl forgo If It closes the plant for two months? b. How much total fixed cost will the company avold If It closes the plant for two months? c. What is the financlal advantage (disadvantage) of closing the plant for the two-month perlod? d. Should Andrettl close the plant for two months? 5. An outside manufacturer has offered to produce 86,000 Daks and ship them directly to Andrettl's customers. If Andrettl Company accepts this offer, the facilltles 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 varlable selling expenses would be only twothirds of their present amount. What is Andrettl's avoldable cost per unit that It should compare to the price quoted by the outside manufacturer