Req 1A, Req 1B, Req 2, and Req 3 only please
Andretti Company has a single product called a Dak. The company normally produces and sells 89.000 Daks each year at a selling price of $56 per unit. The company's unit costs at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit $ 9.50 11.00 2.90 8.00 ($712,000 total) 3.70 4.50 ($400,500 total) $39.60 A number of questions relating to the production and sale of Daks follow. Each question is independent Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2 Reg 3 Reg 4A to 4C Req 4D Reg 5 Assume that Andretti Company has sufficient capacity to produce 106,800 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unlt sales by 20% above the present 89,000 units each year if it were willing to increase the fixed selling expenses by $150,000. What is the financial advantage (disadvantage) of investing an additional $150,000 in fixed selling expenses? Show less Reg Reg 10 > Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2 Reg 3 Req 4A to 4C Req 4D Req 5 Assume that Andretti Company has sufficient capacity to produce 106,800 Daks each year without any Increase in fixed manufacturing overhead costs. The company could increase its unit sales by 20% above the present 89,000 units each year if it were willing to increase the fixed selling expenses by $150,000. Would the additional investment be justified? Yes No Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 2 Reg 3 Req 4A to 4C Req 4D Reg 5 Assume again that Andretti Company has sufficient capacity to produce 106,800 Daks each year. A customer in a foreign market wants to purchase 17,800 Daks. If Andretti accepts this order it would have to pay import duties on the Daks of $4.70 per unit and an additional $10,680 for permits and licenses. The only selling costs that would be associated with the order would be $2.20 per unit shipping cost. What is the break-even price per unit on this order? (Round your answers to 2 decimal places.) Show less Break-oven price per unit Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2 Reg 3 Req 4A to 4C Reg 4D Reg 5 The company has 600 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? (Round your answer to 2 decimal places.) Relevant unit cost per unit
