Can I please get help on questions 4 & 5 in this problem?
Andretti Company has a single product called a Dak. The company nomally produces and sells 89,000 Daks each year at a selling price of $44 per unit. The company's unit costs at this level of activity are glven below: Direct materials 6.50 b manufacturing overhead Fixed manufacturing overhead 3.00 ($267.000 total) ses Eixed selling expenses Total cost per unit 5,50 ($489.500 total) S 28.60 A number of questions relating the production and sale of Daks follow. Each question is independent. R ume that Andretti Company has suticient capacity to produce 115.700 Daks each vear without any increase in fixed manufacturing overhead costs. The company could increase its sales by 30 % above the present 89,000 units each year if it vwere willing to increase the fixed selling expenses by $140,000. Calculate the incremental net operating income. (Round your answers to the nearest whole number.) Increased sales 26,700 units Contribution margin per unit 23.90 Incremental contribution margin 6 030, 130.00 Less added fixed selling expense Incremental net operating income 498. 130.00 1-b. Would the increased fxed selling expenses be justified? Yes No. 2. Assume again that Andretti Company has sufficient capacity to produce 115,700 Daks each year. A customer in a foreign market wants to purchase 26,700 Daks. Import duties on the Daks would be $4.70 per unit, and costs for permits and licenses would be $16,020 The only selling costs that would e associated with the order would be $1.50 per unit shipping cost. Compute the per unit break-even price on this order. (Round your answers to 2 decimal places.) Variable manufacturing cost per unit S 17.40 Import duties per unit 4.70 Permits and licenses 0.60 Shipping cast per unit 1.50 Break-even price per unit 24.20 3. The company has 800 Daks on hand that have some irregularities and are therefore considered to be "seconds." Due to the irregularities, it will be impossible to sell these units at the normal price through regular distribution channels What unit cost figure is relevant for setting a minimum selling price? (Round your answer to 2 decimal places.) Relevant unit cost per unit S 2.70 unable to purchase more matenal tor the production of Daks. The stnike 4. Due to a strike in its suppller's plant, Andretti Company expected to last for two months. Andretti Company has enough matenal on hand to operate at 25 % of tmonth peidand the ted seiexnnses w reducd 20% hat e the impact on roits. (intermediate and final) to whole numbers. Round unit calculations to whole numbers.) sing th lant or the month eric(lsses should e indicated aminus sin Round all cauations Contribution margin lost Fixed costs Fixed manufacturing overhead cost Fixed selling cost Net advantage (disadvantage) of closing the plant 5. An outside manufacturer has offered to produce Daks and ship them directly o Andretti's customers. If Andretti Company accepts this offer, the facilities that it uses to produce Daks would be idle; however, fixed manufacturing overhead COSIS WOd de marufacturer iDo eot round intrmediste eaiculations B ial piss expenses would be only two-thirds of their present amount. Compute the unit cost that can be avoided if purchased Variable manufacturing costs Fixed manufacturing overhead cost Variable selling expense Total costs avoided 0.00
