I need some assistance with the following calculations.

PROBLEM 7-18 Relevant Cost Analysis in a Varlety of situations [LO 7-2, LO 7-3, LO Andretti Company has a single product called a Dak. The company normally produces and sells 60,000 Daks each year at a selling price of $32 per unit. The company's unit costs at this level of activity are given below Diroct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit $10.00 4.50 2.30 5.00 ($300,000 total) 1.20 3.50 ($210,000 total) $26.50 A number of questions relating to the production and sale of Daks follow. Each question is independent Required: 1. Assume that Andretti Company has sufficient capacity to produce 90,000 Daks each year without any increase in fixe sales by 25% above the present 60,000 units each year if it were willing to increase the fixed selling expenses by $80,000. Would the increased fixed selling expenses be justified? Assume again that Andretti Company has sufficient capacity to produce 90,000 Daks each year. A customer in a foreign market wants to purchase 20,000 Daks. Import duties on the Daks would be $1.70 per unit, and costs for permits and licenses would be $9,000. The only selling costs that would be associated with the order would be $3.20 per unit shipping cost. Compute the per unit break-even price on this order. The company has 1,000 Daks on hand that have some irregularities and are the re fore consid- ered to be "seconds." Due to the irregularities, it will be impossible to sell these units at the normal price through regular distribution ting a minimum selling price? Explain. d manufacturing overhead costs. The company could increase its 2. 3. channels. What unit cost figure is re levant for set- 4. Due to a strike in its supplier's plant, Andretti Company is unable to purchase more material forthe production of Daks. The strike is expected to last for two months. Andretti Company has enough material on hand to operate at 30% 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 60% of their normal level during the two-month period and the fixed selling expenses would be reduced by 20%, what would be the impact on profits of closing the plant for the two-month period? An outside manufacturer has offered to produce Daks and ship them directly to Andretti's cus- tomers. If Andretti Company accepts this offer, the facilities that it uses to produce Daks would be idle; however, fixed manufacturing overhead costs would be reduced by 75%. Because the outside manufacturer would pay for all shipping costs, the variable selling expenses would be only two-thirds of their present amount. Compute the unit cost that is relevant for comparison to the price auoted by the outside manufacturer. 5. P7-18 Requirement 1 Selling Price per Unit: Variable Expenses per Unit: Contribution margin per unit Increased sales in units: Contribution margin per unit: Incremental contribution margin Less added fixed selling expenses Incramental Net Operating Income: $ :$ Would the increased fixed selling expenses be justified? Requirement 2. Variable manufacturing cost per unit: Import duties per unit: Permits and Licenses per unit: Shipping cost per unit: Break-even price per unit: Requirement 3 Requirement 4 0 units 0 0 units 0 units produced and sold Units per year: times two-month period divided by 12 months in a year times 30% of normal levels Fixed manufacturing overhead cost ($300,000 x 2/12- $50,000; $50,000x 4096 Contribution margin lost if the plant is closed Fixed manufacturing overhead cost Fixed Selling Cost: Net Disadvantage of Closing the Plant: 20,000 $7,000.00 $ 27,000.00 $(27,000.00) Fixed selling cost ($210,000 x 2/12 $35,000; $35,000x 20%) Requirement 5. Fixed manufacturing overhead cost ($300,000 x 75% $225,000; $225,000 + 60,000 units) Variable manufacturing cost per unit:$ Fixed manufacturing overhead cost: 3.75 Variable Selling Expense Total costs avoided: $ 4.15 $ 4.15 per $4.15 per unit Variable seling To be acceptable, the outside manufacturer's quote must be LESS than: selng expense ($1.20 x 1/3)