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gitce of $56 pee unt The comparys unit costs at the loves of activin are gefen below Anumber of querrons relating to the production and

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gitce of $56 pee unt The comparys unit costs at the loves of activin are gefen below Anumber of querrons relating to the production and este of Daks follow Each questan s independent. Pecqutred: manufecturing overnead costs The company could increase its unit soles by 35 : above the present a1,c00 uniss eacit yesi if it were whing to incresse the fived seling expenses by $130,000. What is the finsncid advamage jdisodrontogel of investing an eactions $130,000 in food setting expentes? 46. Would the oddmonal nivestment be justifed? want to purchase 28,350 Daks. If Andrem occepts vis orderit would hrye to poy import dutes on the Diks or 5470 per ant and sn smipainc cost. What is the breok-wven price des unit on II s cider? figule biat is roievart for setting o mininum seling orice? expected 10 last for wo montis. Andien Compary nas eacuch material oa hand to operate at 25% of nomal fevers for the two micnth red uced by 20 fidunng the two-nonth beriod. 6. How/mach total contibuson margin wer Ancreni forgo if it doses the plant for two months? b. Haw much yotal fued cost wal the company avoid if it closes the plant for two nontrs? c. What is the finandial advantage idisadivanagel of coscing the piant for the two-month penoce? di Sheard Andieti cose the plont for tivo morias? reduced by 30 : Betause the outside manutacturer vould pay for all sripping cosus, the variable seting bypenses woild be only twomianitsetarer? Cencilete this question by eatering yeur answers in the tabs helow. Fice of $56 per anit The combary/5 unit coste at this lewel of actaty are ghifi below A humbey of cuestions relating to the peoducticn and sale of Doks fo ow. Each question is independent: Aequtred: 1 a. Acsume thet Ancroth Comoary has suif cient capacity to produce 109.350 Dsis each year without awy increase un furd manufecturing overhead coess. The compary could increase its unit sales by 35 . abdve the present 31,000 units eacr year if it were Wiling to increase the tied teiling expensos by 5130.000 What is the financial odvantage foltadvantagef of lovestng an ockithanal $100000 in fued solling experises? 16. Wod the adarional hestment be justised? 2. Assame agstn that Andret1 Company has suffictent capscity to broduce 59350 Daks each yesr, A customar in a focelgo market Wants to nurchase 28,350 Dakt. If andrett accests this order it would hove to pay impart duthes on the Dhis of $40 per unit and an occuchai $25,515 ior selmats onc itentes The only seiling costs that would be assocated with ehe order woud bo $1.90 per uivt tigure tiob it relevist tor seming a trinum setsing ancef 4. Due 10 o twike in ris supplief's plant, Andruts Compony is unoble to purchace more masenaf for bhe groduction of Doks. The stive is. benod. As en akternatye, findretil could ciose its plant down entrely for the two montrin if the pism were clesed, fued manulocturth' tebered by 20 toung the twio month penad b. How much 1otsi fived cost was the company avoid if t closes wie piant for two tronths? d. Stiousd Angiem close the plert tor two manthe? manufacainer? ibsw. Andrett Coirpany has a single oroduct called a Dak. The compary normay procuces and sele gtooo. Dics eschyear at a cailing pice of 550 per une. The company's un costs at this level of activity ore given beiow. A number of quostions reistrin to the oroducticn and sale of Daks folow. Eoch queston is independent Required: 1-a. Assame that Andretil Company has suffelent capacity to produce 109.350 Daks each year without any increase in 1 Wed Wining 6 increase the foxed sellag eipenses by $130.000. What s the financial advantage fdisacvantspel of investing an adorlonia 540,000 in fored setuing expenses? 1-b. Would the oddrional livestment be justifed? went to purchase 28,350 Daks it Andrett occepts this orcer it would nave to pay import dutes on tho Daks of $470 per unis ond an acoivonal 525,515 for permits and llcenses. The only seling couts that would be associated with the order would be \$190 per ant sripping cont What ti the oreak-even pitce per unit sen shis order? 3. The comosny has 500 Dolks on hond tisst have come isegularties and are therefore consideted to be "seconcs: Due to the itregulartles, it will be impossible ta sell these uncs at the normat orice through regure clstribution channels. Whar is the unit cont figure that ic relevant for seking to mimum seling pace? 4, Due to a stake in its supplet's pian, Andretti Compsny is unstie to purcriase more matend for the production of Doks. The strike in penod. As an alternative, Ancreal couid close its cast down entrely for the two months. If the plant vere closed, foed manufacturing overiege cost would continue at 305 of they normal fovel during the nwo-montl pecod and the fuec sesing expentes would be reduced ty 20% during the fwornonth peffod a. How much totsi canterturion margin witi Andretil forgo if th closes the plant for two months? 8. How much total fixed coss wil tha company avold if it closes the plant for two months? c. What is the finsnciai savantage fdisocvantage) of closing the plant for the two-month petod? at Should Ancrem dose the plart for wo months? ilards of thed present amount. What le Andretw's awoidable coft per unit that it should compsre to the price quoted by the outside manufecture? Camplete this auestion by entering your enswers in the tabs halawe. Requlfed: \$1ss.000 in fued seing experses? 1a Would the aodifons investment be just ed? shosing cost What is the break tiven ptice ver unit on this order? b. How much fotsif foed cost whit the company avaig e t tiosee tye pramt foc two thorths? ad Too,id Andien cioce the olust for two merthe? merulacture? Andretti Company has a single product called a Dak. The compapy nompoy produses a id selis atoco Daks eachyear at a selling arice of $56 per unit. The company's unit costs at this level of ocevity are given beidov A number of cuestions relating to the production and sale of 0 sks follow. Eoch cuestion is independent, Reculied: 1.a. Assume that Andretti Company has wutficient capacity to produce 109,350. Daks each year wathout any increase in fixeo manufacturing overnead costs. The company could increase its unit sales by 35% above the present gl,000 units eachyesr if it were $130.000 in fived se ing expenses? 1-b. Woud the oddionti investmem be lustified? 2. Assume again thast Ancieti Company has sufficient sepocity to produce 109,350 Dsks each year A customer.in a foreign maiket. wents to purchase 29,350 Daks, if Andreti occepts this ofder t would have to pay import dules ao the Daks of $470 per init and an adstional $25.515 for permits and licenses. The oniy selling costs that would be associated with the order would be $190 per unit shipping cost. What is the break-even price per unit on this order? 3. The compary hos 500 Daks on band thst hove some ifregularities and are the efore considered to be "seconda "Due to the ifreguiacties, it will be imposs ofe to sell these units at the normal price through regular distribution chanceis. What is the unit cost figure that is reievsnt for setting a flinimum selling orice? 4. Due to a strike in its suppler's phant, Andreti Company is unable to purchase riore matefial for the production of Daks. The stike is expected to last for two months. Andrett Compony has enough materibl on hind to operste at 255 of nommol levels for the two-manth period, As on a rernative. Andiretti could siose its piant down entirely for the bwo moaths, if the plart were cosed, fixed manufacturing cverhead costs would continue at 30% of their normal ievel duing the twornonth petiod and the fived seting expenses would be reduced by 20% duing the two-menth period. a. How much total compribution margin will Andretti forgo if it coses the plant fortwo months? b. How much total foxed cost will the company avoid if it closes the plant for two months? c. What is the financial advantsge (disadvantogel of closing the plant for the two-monan period? d. Should Andreti close the plant for two months? . An outtide manifacturer has offered to produce 81000 Daks and ship them directy to Andrentis cusnomen uf Andieti Company accepts this gffer, the facinies that it uses to groduce Daks would be idie, however, fived manufacturing overnead costs would be reduced ty sos. Because the outside manufacturer would poy for ail shipping coats, the variable seling expenses would be only twothires of their present amount. What is Andietsi's a voideble cost per anit that it should compare to the price quoted ay the outside meniafacturer? Complete this question by entering your ansvers in the tahis below, piacoi

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