Andrettl Company product celled The company normally produces 83.000 Daks each year at a gelllng price of 538 per unt The convanyg unlt costs at level of actMty are g've,n below Labor twi ng o ing Tut unit s 6.se g.ae (S664,eee total) use (S2e7,5ee total) s 22. se A number of guestlor,G relatlng to the productlon and gale of Daks follow Each quezor, It-dependent Required: 1-2. Assume that Andrettl Company guffclent capaclty to produce 112050 Daks each year wl%out any Increase In fixed manufac.urlng The could Increae by the present 83.000 year If were 5110.000 In fixed gellln;l expenses? I-S Would the Investment be Jugtfled7 2 Assume t.'Et Andrettl Company guffclent capacity to produce 112030 Daks each year. A customer In a forelgn market wart; to purchase 29,050 Oaky If Andrettl pay on the of S4_70 per and an 23,240 for permltE and The gellln;l cost; that n:zuld be order would be 220 per unlt Ef71pplng WtlEt IE the reak-even prlce on order? The company 600 on ]7.st have zome are therefore congldered to be seconds.' Due to the IrregularltleG. It WII be to Eell these unltg at the normal price through regular dlgtrl&ut'on channels. What the unlt cog figure that IE relevant for settlng mlnlmum grlce? Due to Etrlke In It; plant. Andrettl Company unable to purchase more for the groductlon of The Etrlke Is expected to for months. Andrettl Company on hand operate at of normal levels for the two-month perl'S an Andrettl could close Its Plant down entlrety for montf7G_ If the plant were closed. fixed manufacturing overhead cogtE vuould contlnue at of normal level durlng the Wc-month perlod the gelllng expenses would be reduced by durlng the n:-mont.'l a. How much O:EI contrlbullon margln WII Andrettl forgo If closes the for two months? How much total fixed cost WII the company avolt If plant months? c W,'7St IE the of the for two-month perlod? d. Should Andrettl close the plant for two months? An outglde manufecturer to produce 83.0CO Daks them dlrecty to customers If Andrettl Company accept; offer, the facllltleg that It to produce Idle: however. manufecturlng overhead cogtE be reduced by 30%. the manufecture,' would pay for all costs. varlable only two- tf71rSE ofthelr present amount What Ardrettrg avoldable cost per unr that It ghould compare to the prlce quod by the outglde manufacturer? Cmplete this bv in tabs 3 to stri& p+t, to fv of THE strike is to lest for 25',' of nannil for the En Andretti could it: If during (Rune units to the rest inw-mediete to 2 d p I a s. Any indieted by min sign.) E. total margin will ArZretti forgo if it total will if it c. WI-Et fi 'f the for tn-znth TctyJ