just need help with the 2 red x's

Andretti Company has a single product called a Dak. The company normally produces and sells 84,000 Daks each year at a selling price of $44 per unit. The company's unit costs at this level of activity are given below: Direct materials $ 6.50 Direct labor 9.00 Variable manufacturing overhead 2.00 Fixed manufacturing overhead 9.00 ($756,000 total) Variable selling expenses 2.70 Fixed selling expenses 6.50 ($546,000 total) Total cost per unit $ 35.70 A number of questions relating to the production and sale of Daks follow. Each question is independent. Required: 1-a. Assume that Andretti Company has sufficient capacity to produce 113,400 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 35% above the present 84,000 units each year if it were willing to increase the fixed selling expenses by $120,000. Calculate the incremental net operating income. (Round your answers to the nearest whole number.)Required: 1-a. Assume that Andretti Company has sufficient capacity to produce 113,400 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 35% above the present 84,000 units each year if it were willing to increase the fixed selling expenses by $120,000. Calculate the incremental net operating income. (Round your answers to the nearest whole number.) x Answer is complete but not entirely correct. Increased sales in units 1,081,920 X Contribution margin per unit 23.80 $ Incremental contribution margin 25,749,696.00 Less added fixed selling expense 120,000.00 Incremental net operating income $ 25,629,696.00 1-b. Would the increased fixed selling expenses be justified? ONo OYes 2. Assume again that Andretti Company has sufficient capacity to produce 113,400 Daks each year. A customer in a foreign market wants to purchase 29,400 Daks. Import duties on the Daks would be $3.70 per unit, and costs for permits and licenses would be $20,580. The only selling costs that would be associated with the order would be $2.00 per unit shipping cost. Compute the per unit break-even price on this order. (Round your answers to 2 decimal places.) Answer is complete and correct. Variable manufacturing cost per $ unit 17.50 Import duties per unit 3.70 Permits and licenses 0.70 Shipping cost per unit 2.00 Break-even price per unit $ 23.904. 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 35% 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? (Any losses should be indicated by a minus sign. Round all calculations (intermediate and final) to whole numbers. Round unit calculations to whole numbers.) x Answer is complete but not entirely correct. Contribution margin lost $ 83,300 X Fixed costs Fixed manufacturing overhead cost $ 81,900 Fixed selling cost 18,200 100,100 Net advantage (disadvantage) of closing the $ 183,400 plant 5. An outside manufacturer has offered to produce Daks and ship them directly to Andretti's customers. 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 30%. 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 can be avoided if purchased from the outside manufacturer. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete and correct. Variable manufacturing costs $ 17.50 Fixed manufacturing overhead cost 2.70 Variable selling expense 0.90 Total costs avoided $ 21.10