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X Dashboard X Question 3 - Chapter 13 Home X Due to a strike in its supplier's x | + to.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F.. 13 Homework Saved Help Save & Exit Su Check my wo Problem 13-18 (Algo) Relevant Cost Analysis in a Variety of Situations [LO13-2, LO13-3, LO13-4] Andretti Company has a single product called a Dak. The company normally produces and sells 86,000 Daks each year at a selling price of $58 per unit. The company's unit costs at this level of activity are given below: Direct materials $ 7.50 Direct labor 9.00 Variable manufacturing overhead 2. 90 Fixed manufacturing overhead 5. 00 ($430, 000 total) Variable selling expenses 3. 70 ces Fixed selling expenses 2.50 ($215, 000 total) Total cost per unit $ 30 . 60 A number of questions relating to the production and sale of Daks follow. Each question is independent. Required:Problem 13-18 (Algo) Relevant Cost Analysis in a Variety of Situations [LO13-2, LO13-3, LO13-4] 5 Andretti Company has a single product called a Dak. The company normally produces and sells 86,000 Daks each year at a selling nts price of $58 per unit. The company's unit costs at this level of activity are given below: Direct materials $ 7.50 eBook Direct labor 9. 00 Variable manufacturing overhead 2. 90 Print Fixed manufacturing overhead 5.00 ($430 , 000 total) Variable selling expenses 3. 70 ferences Fixed selling expenses 2. 50 ($215, 000 total) Total cost per unit $ 30.60 A number of questions relating to the production and sale of Daks follow. Each question is independent.ezto.mneducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F... Chapter 13 Homework i Saved Help Save & Exit Sub Check my wor 3 manufacturer? Complete this question by entering your answers in the tabs below. 12.5 points Req 1A Req 1B Req 2 Req 3 Req 4A to 4C Req 4D Req 5 eBook Due to a strike in its supplier's plant, Andretti Company is unable to purchase more material for the production of Daks. The Print 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, Andretti could close its plant down entirely for the two months. If the plant were References closed, fixed manufacturing overhead costs would continue at 30% of their normal level during the two-month period and the fixed selling expenses would be reduced by 20% during the two-month period. (Round number of units produced to the nearest whole number. Round your intermediate calculations and final answers to 2 decimal places. Any losses/reductions should be indicated by a minus sign.) 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? Show less A Forgone contribution margin Total avoidable fixed costs Financial advantage (disadvantage)
