Ch.11 Review Assignments Saied 5 10 points Andretti Company has a single product called a Dak. The company normally produces and sels 89.000 Daks each year at a selling price of $60 per unit. The company's unit costs at this level of activity are given below Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead variable selling expenses Fixed selling expenses Book Total cast per unit 58,50 8.712.00 total), 4.70 $36.00 Print References A number of questions relating to the production and sale of Daks follow. Each question is Independent Required: 1-a. Assume that Andretti Company has sufficient capacity to produce 120150 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 35% above the present 89.000 units each year aft were willing to increase the foiled selling expenses by $110,000. What is the financial advantage (disadvantage of investing an additional $110,000 in fixed selling expenses? 10. Would the additional investment be justified? 2. Assume again that Andrett Company has sufficient capacity to produce 120,150 Daks each year. A customer in a foreign marker wants to purchase 31150 Daks if Andretti accepts this order it would have to pay import duties on the Daks of $3.70 per unit and an additional $21.805 for permits and licenses. The only selling costs that would be associated with the order would be $2.60 per unit shipping cost. What is the break-even price per unit on this order? 3. The company has 500 Deks 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 is the unit cost figure that is relevant for setting a minimum selling price? 4. Due to a strike in its supplier's plant, Andretti Company is unable to purchase more material for the production of Daks The strike expected to last for two months Andretti Company has enough material on hand to operate at 25% of normal levels for the two-month period. As an alternative, Andrets could close its plant down entirely for the two months. If the plant were closed, fed manufacturing overhead costs would continue at 35% of their normal level during the two-month period and the fixed selling expenses would be reduced by 20% during the two-month period a How much total contribution margin will Andretti forgo if it closes the plant for two months? b. How much total fixed cost will the company avoid if it closes the plant for two months? c. What is the financial advantage (disadvantage) of closing the plant for the two-month period? d. Should Andrem close the plant for two months? 5 An outside manufacturer has offered to produce 89.000 Daks and ship them directly to Andret's customers Andrett Company accepts this offer the faces that it uses to produce Daks would be idle, however, fixed manufacturing overhead costs would be reduced by 30% Because the outside manufacturer would pay for all shipping costs, the variable selling expences would be only two- thirds of their present amount. What is Andrett's avoidable cost per unit that it should compare to the price quoted by the outside manufacturer? Complete this question by entering your answers in the tabs below. A Res 18 Aug 2 Reg 4A4C 40 Assume that Andrats Company has sufficent capacity to produce 120.150 Daks each year without any increase in ford manufacturing overhead costs. The company could increase its unit sales by 35% above the present 00.000 units each year a it were willing to increase the food selling expenses by $110.000. What is the financial advantage (disadvantage of investing an additional $110.000 in fed selling expenses? Reg 18 >> Show less a