Birch Company normaly produces and selis 49,000 units of RG.6 each month. The seiling price is $20 per unit, wariable costs are $10 per unit, fixed manufacturing overhead costs total $5,000 per month, and fixed selling costs total $44,000 per month. Employment-contract strikes in the companies that purchase the bulk of the RG-6 units have caused Birch Company's soles to 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 plant during the strike, which would reduce is foed manufacturing overhead costs by $45,000 per month and its foued 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. Requited: 1. What is the financial advantage (disadvantage) if Birch closes its own plant for fwo months? 2. Should Birch close the plant for two months? 3. At what level of unit sales for the two-month poriod would Birch Compary be indiffecent between closing the plant or keeping it open? Complete this question by entering your answers in the tabs below. What is the financial advanage (disadvantage) it Birch closes its own plam for two months? Birch Company normally produces and selis 49,000 units of RG.6 each month. The selling price is $20 per unit, variable c per unit, fixed manufacturing overhead costs total $165,000 per month, and fixed selling costs total $44,000 per month. Employment-contract strikes in the companies that purchase the bulk of the RG-6 units have caused Birch Company's sale temporarily drop to only 9,000 units per month. Birch Company estimates that the strikes will last for two months, after wh sales of RG-6 should return to normal. Due to the current low level of sales, Birch Company is thinking about closing down plant during the strike, which would reduce its fixed manufacturing overhead costs by $45,000 per month and its fixed sel 10%. Start-up costs at the end of the shutdown period would total $15,000. Because Birch Company uses Lean Production inventories are on hand. Required: 1. What is the financial advantage (disadvantage) if Birch closes its own plant for two months? 2. Should Birch close the 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 ke open? Complete this question by entering your answers in the tabs below