The Company has a single product called a Dak. The company normally produces and sells $84,000$ Daks each year at a selling price of $$62$ per unit. The company$$s units costs at this level of activity are given below.

Direct materials is $$6\mathrm{.}50.$

Direct labor is $10\mathrm{.}00.$

Variable manufacturing overhead is $3\mathrm{.}20.$

Fixed manufacturing overhead is $6\mathrm{.}00($$$504,000$ total$).$

Variable selling expenses is $2\mathrm{.}70.$

Fixed selling expenses is $4\mathrm{.}50($$$378,000$ total$).$

Total cost per unit is $$32\mathrm{.}90.$

Due to a strike in the supplier$$s plant, the company is unable to purchase more material for the production of Daks. The strike is expected to last for two months. The company has enough materials on hand to operate at $25\%$ of normal levels for the two$-$month period. As an alternative the company 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 $20\%$ during the two$-$month period.

$1.$ How much total contribution margin with the company forgo if its closes the plant for two months?

$2.$ How much total fixed cost will the company avoid if its closes the plant for two months?

$3.$ What is the financial advantage $($disadvantage$)$ of closing the plant for the two$-$month period?

$4.$ Should the company close the plant for two months?