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I cannot figure out why the 3rd part is wrong. Please help> Type or paste question here Complete this question by entering your answers in
I cannot figure out why the 3rd part is wrong. Please help>
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Complete this question by entering your answers in the tabs below. Req 1A Req 1B Reg 2 Req3 Req 4A to 4C Req 4D Reg 5 -42 oints 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, Andretti could close its plant down entirely for the two months. If the plant were 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 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 Forgone contribution margin Total avoidable fixed costs Financial disadvantage $ $ 121,998.00 71,167.00 50,831.00Step by Step Solution
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