Ive got some of it done just need help with 4a-4c and 5

Andretti Company has a single product called a Dak. The price of $60 per unit. The company's unit costs at this level of activity are given below: company normally produces and sells 83,000 Daks each year at a selling s 7.50 10.00 1.90 Labor Pixed manufacturing 1.70 4.50 (5373,500 total) $31.60 A number of questions relating to the production and sale of Daks follow. Each question is independent. 1-a. Assume that Andretti Company has sufficient capacity to produce 112,050 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 35% above the present 83,000 units each year if it willing to in e (disadvantage) of investing an addional $150,000 in fixed selling expenses? 1-b. Would the additional investment be justified? 2. Assume again that Andretti Company has sufficient capacity to produce 112,050 Daks each year. A customer in a foreign market wants to purchase 29,050 Daks. If Andretti accepts this order it would have to pay import duties on the Daks of $2.70 per unit and an additional $23,240 for permits and licenses. The only selling costs that would be associated with the order would be $2.10 per unit shipping cost. What is the break-even price per unit on this order? 3. The company has 700 Daks on hand that have some irregularities and are therefore considered to be seconds. Due to the irregularities, it will be impossible to sell these units at the normal price through regular distribution channels. What is the unit cost figure that is relevant for setting a minimum selling price? 4. Due to a strike in its suppli strik ers plant, Andretti Company is unable to purchase more material for the production of Daks. The material on hand to operate at 25% of normal levels for riod. As an alternative, Andretti could close its plant down entirely for the two months If the plant were closed, e is expected to last for two months. Andretti Company has enough the fixed manufacturing d costs would continue at 35% of their normal level during the two-month period and the fixed selling would be reduced by 20% during the two-month period. a. How much b. How much total fixed cost will the c gin will Andretti forgo if it closes the plant for two months? avoid if it closes the plant for two months? c. what is the financial advantage idisadvantage) of closing the plant for the two-month peniod? Prev 1 of 3 Next dish