Bich Company normally produces and sells 43,000 units of RG-6 each month. The seiling price is $30 per unit, vartable costs are $10 per unit, fixed manufactuing ovethead costs total $195,000 per month, and fixed seling costs total $34,000 per month. Employment-contract strkes in the companies that purchase the bulk of the RG.6 units have caused Birch Company s sales to temporarly drop to only 9,000 units per month. Birch Company estimates that the strkes will last for fwo months, after which time sales of RG.6 should retum to normat Due to the current low level of sales, Birch Company is thinking about closing down its own plant during the strike, which would reduce its fixed manufacturing overhead costs by $44,000 per month and its fixed selling costs by 10\%. Start-up costs at the end of the shutdown perlod would total 516,000 Because Birch Company uses tean Production methods, no inventortes are on hand Required: 1. What is the financial advantage (disadvantage) if Burch closes its own plant for two months? 2 Should Birch close the plant for two months? 3. At what ievel of unit sales for the two-month period would Birch Company be indifferent befween ciosing the plant or keeping it open? Complete this question by entering vour answers in the tals below. What is the finandal advantage (disadvantage) If Birch doses is oan plant for two months? Bich Company normally produces and sells 43,000 units of RG-6 each month. The seiling price is $30 per unit, vartable costs are $10 per unit, fixed manufactuing ovethead costs total $195,000 per month, and fixed seling costs total $34,000 per month. Employment-contract strkes in the companies that purchase the bulk of the RG.6 units have caused Birch Company s sales to temporarly drop to only 9,000 units per month. Birch Company estimates that the strkes will last for fwo months, after which time sales of RG.6 should retum to normat Due to the current low level of sales, Birch Company is thinking about closing down its own plant during the strike, which would reduce its fixed manufacturing overhead costs by $44,000 per month and its fixed selling costs by 10\%. Start-up costs at the end of the shutdown perlod would total 516,000 Because Birch Company uses tean Production methods, no inventortes are on hand Required: 1. What is the financial advantage (disadvantage) if Burch closes its own plant for two months? 2 Should Birch close the plant for two months? 3. At what ievel of unit sales for the two-month period would Birch Company be indifferent befween ciosing the plant or keeping it open? Complete this question by entering vour answers in the tals below. What is the finandal advantage (disadvantage) If Birch doses is oan plant for two months