Andrettl Company has a single product called a Dak. The company normally produces and sells 84,000 Daks each year at a selling price of $56 per unlt. 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. Requlred: 1-a. Assume Andrettl Company has sufficlent capacity to produce 109,200 Daks each year without any Increase In fixed manufacturing overhead costs. The company could Increase Its unlt sales by 30% above the present 84,000 unlts each year if It Increased fixed selling expenses by $140,000. What Is the financlal advantage (disadvantage) of Investing an additional $140,000 In fixed selling expenses? 1-b. Would the additional Investment be Justlfied? 2. Assume Andrettl Company has sufficlent capacity to produce 109,200 Daks each year. A customer In a forelgn market wants to purchase 25,200 Daks. If Andrettl accepts this order, It would pay Import dutles on the Daks of $2.70 per unlt and an additional $20,160 for permits and licenses. The only selling costs assoclated with the order would be $1.60 per unit shipping cost. What is the break-even price per unit on this order? 3. The company has 900 Daks on hand with some Irregularitles that make it Impossible to sell them at the normal price through regular distribution channels. What unit cost figure is relevant for setting a minimum selling price to liquidate these units? 4. Due to a strike in Its supplier's plant, Andrettl Company is unable to purchase more materlal for the production of Daks. The strlke 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 alternatlve, Andrettl could close Its plant down entirely for the two months. If the plant were closed, fixed manufacturing overhead costs would continue at 35% of thelr 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 financial advantage (disadvantage) of closing the plant for the two-month perlod? d. Should Andrettl close the plant for two months? 5. An outside manufacturer offered to produce 84,000 Daks and ship them directly to Andrettl's customers. If Andrettl Company accepts this offer, the facllitles that it uses to produce Daks would be Idle; however, fixed manufacturing overhead costs would be reduced by 75%. 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 it should compare to the price quoted by the outside manufacturer