correct answer pleSe
Andretti Company has a single product called a Dak. The company normally produces and sells 88,000 Daks each year at a selling price of $60 per unit. The company's unit costs at this leval nf anthak... ven below: 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 105,600 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 20% above the present 88,000 units each year if it were willing to increase the fixed seling expenses by $130,000. What is the financial advantage (disadvantage) of investing an additional 1-b. Would the additional investment be justified? 2. Assume again that Andretti Company has sufficient capacity to produce 105,600 Daks each year. A customer in a foreign market wants to purchase 17,600 Daks. If Andretti accepts this order it would have to pay import duties on the Daks of $2.70 per unit and an additional $14,080 for permits and licenses. The only selling costs that would be associated with the order would be $2.20 per unit 3. The company has 600 Daks on hand that have some irregularities and are therefore considered to be "seconds." Due to the Ifregularities, 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? Assume that Andretti Company has sufficient capacity to produce 105,600 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 20% above the present 88,000 units each year if it were willing to increase the fixed seliing expenses by $130,000. What is the financial advantage (disadvantage) of investing Complete this question by entering your answers in the tabs below. Assume again that Andretti Company has sutficient capacity to produce 105,600 Daks each year. A customer in a foreign market wants to purchase 17,600 Daks. If Andretti accepts this order it would have to pay import duties on the Daks of $2.70 per unit and an additional $14,080 for permits and licenses. The only selling costs that would be associated with the order would be $2.20 per unit shipping cost. What is the break-even price per unit on this order? Note: Round your answers to 2 decimal places. The company has 600 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 is the unit cost figure that is relevant for setting a minimum selling price? Note: Round your answer to 2 decimal places. Due to a strike in its supplier's plant, Andretti Company is unable to purchase more material for the production of Daks. The strike is 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, Andrettil could close its plant down entirely for the two months. If the plant were fixed selling expenses would be reduced by 20% during the two-month period. Note: Round number of units produced to the nearest whole number. Round your intermediate calculations and final answers b. How much total fixed cost margin will Andretti forgo if it closes the plant for two months? c. What is the financial advantage (disadvantage) of closing the the plant for two months? An outside manufacturer has offered to produce 88,000 Daks and ship them directly to Andretti's customers. If Andretti Company accepts this offer, the facilities that it uses to produce Daks would be idle; however, fixed manufacturing overhead to the price quoted by the outside manufacturer? Note: Do not round intermediate calculations. Round your answers to 2 decimal places