Birch Company normally produces and sells 44,000 units of RG-6 each month. The selling price is $20 per unit, variable costs are $10 Birch Company normally produces and sells 44,000 units of RG-6 each month. The selling price is $20 per unit, variable costs are $10 per unit, fixed manufacturing overhead costs total $155,000 per month, and fixed selling costs total $32,000 per month. per unit, fixed manufacturing overhead costs total $155,000 per month, and fixed selling costs total $32,000 per month. Employment-contract strikes in the companies that purchase the bulk of the RG-6 units have caused Birch Company's sales to Employment-contract strikes in the companies that purchase the bulk of the RG-6 units have caused Birch Company's sales to temporarily drop to only 9,000 units per month. Birch Company estimates that the strikes will last for two months, after which time temporarily drop to only 9,000 units per month. Birch Company estimates that the strikes will last for two months, after which time sales of RG-6 should return to normal. Due to the current low level of sales, Birch Company is thinking about closing down its own sales of RG-6 should return to normal. 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 $41,000 per month and its fixed selling costs by plant during the strike, which would reduce its fixed manufacturing overhead costs by $41,000 per month and its fixed selling costs by 10% Start-up costs at the end of the shutdown period would total $15,000. Because Birch Company uses Lean Production methods, no inventories are on hand. 10% Start-up costs at the end of the shutdown period would total $15,000. Because Birch Company uses Lean Production methods, no inventories are on hand. Required: 1. What is the financial advantage (disadvantage) if Birch closes its own plant for two months? Required: 2. Should Birch close the plant for two months? 1. What is the financial advantage ( disadvantage) if Birch closes its own plant for two months? 3. At what level of unit sales for the two-month period would Birch Company be indifferent between closing the plant or keeping it 2. Should Birch close the plant for two months? open? 3. At what level of unit sales for the two-month period would Birch Company be indifferent between closing the plant or keeping it open? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 At what level of unit sales for the two-month period would Birch Company be indifferent between closing the plant or keeping Required 1 Required 2 Required 3 it open? What is the financial advantage ( disadvantage) if Birch closes its own plant for two months? Unit sales required for Birch to be indifferent O X Q1 req.png ... 69% The Saint Lucia Blood Bank, a private charity partly supported by government grants, is located on the Caribbean island of Saint Lucia. The blood bank has just finished its operations for owerful hurricane that hit neighboring islands causing many injuries. The hurrica Saint Lucia willingly donated r blood to help people on other islands. As a consequence, the blood bank collected and processed over 20% more blood than had been originally planned for the month. A report prepared by a government official comparing actual costs to budgeted costs for the blood bank appears below. Continued support from the government depends on the blood bank's ability to demonstrate control over its costs. Saint Lucia Blood Bank For the Month Ended September 30 Actual Results Planning variances Liters of blood collected 426 Lab tests $ 7,938 4,973 $ 6,510 $ 1,428 U quipment depreciation Rent 3.640 4. 758 Utilities 786 Administration 12,064 12, 534 530 U Total expense $ 30, 801 $ 28,232 $ 2, 569 0 The managing director of the blood bank was very unhappy with this report, claiming that his costs were higher than expected due to the emergency on the neighboring islands. He also pointed out that the additional costs had been fully covered by payments from The government offi cial who prepared the report countered that all of the figures had been submitted by the blood bank to the government, he was just pointing out that actual costs were a lot higher than promised in the budget The following cost formulas were used to construct the planning budget Medical supplies 312.40 Equipment depreciation Rent Utilities $10,460 + 32:709 Required: Complete the flexible budget performance report for September. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Saint Lucia Blood Bank Flexible Budget Performance Report For the Month Ended September 30 Actual Flexible Planning Liters of blood collected 420 Medical supplies 5 7,938 5 6.510 Lab tous 4.973 4.788 Equipment depreciation 3.640 3.300 Rent 1 400 1.400 Utilities 786 700 Administration 12.064 11.534 Total expense 5 30.801 5 28 232