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 glven below $2.20 unit shipping WI-Y is the unit this (Rund Scur Labor variable selling Tut unit s 6.se 8.e ($664 total) use (S2e7,5ee total) s 12. se A number of guestlor,G relatlng to the productlon and gale of Daks follow Each quezor, It-dependent Requlred: 1-2. Assume that Andrettl Company has guffclent capaclty to pruce 112050 Daks each year wlthout 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 addltlonS Irutment be Jugtfled7 2 Assume trat Andrettl Company Euffclent to produce 112050 Daks each year. A customer In forelgn market wants to purchase 29,050 Oaky If Andrettl pay on the of S4_70 per unr 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 have zome are therefore congldered to be seconds.' Due the IrregularltleG. It WII be to Eell these unltg the normal price through regular dlgtrl&ut'on channels. What the unlt cog figure that IE relevant for settlng mlnlmum grlce? 4. Due to Etrlke In It; plant. Andrettl Company Is unable to purchase materlal for the productlon of Dake The Etrlke Is expecteZto for month; Andrettl Company on Hand operate at of normal levels for perl'S an alternatWe. 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 durlrg the a. How much O:EI contrlu.lon margln WII Andrettl forgo If close; the plant fortwo months? b. How much total fixed cost WII the company avolt If plant for n-zntf7G? c What IE the financlEI of the for the Wc-month perlod? d. Should Andrettl close the plant for two months? An outglde manufecturer offered to orctuce 83.000 Daks them dlredy to Ardrettrg customers If Andrettl Company accept; offer, the facllltleg that It to produce DakE Idle: however, fixed manufezturln;l overhead cogtE be reduced by 30%. the outglde manufecturer would pay for all costs. varlable be only two- t.'71rSE ofthelr pregent 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 agyin Andretti to 112,050 in foreign to 29,050 If this impart tl- of $4.70 unit end an $23,240 for 2nd Tl- E@ling cuts 2720 with tl- to 2 dEin-El