Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

these are the answers i came up with and they are all wrong. will someone who please knows how to do this answer all of

image text in transcribed

these are the answers i came up with and they are all wrong. will someone who please knows how to do this answer all of them.

Andretti Company has a single product called a Dak. The company normally produces and sells 90,000 Daks each year at a selling price of $42 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 $ 9.50 8.00 2.60 3.00 ($270,000 total) 1.70 5.50 ($495,000 total) Total cost per unit $30.30 3. The company has 500 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 unit cost figure is relevant for setting a minimum selling price? Round your answer to 2 decimal places.) Relevant unit cost 21.80per unit 4. 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 40% 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? (Enter losses/reductions with a minus sign. Round intermediate calculations to 2 decimal places. Round number of units calculation and final answers to nearest whole number.) Contribution margin lost 75,750 Fixed costs S 108,000 Fixed manufacturing overhead cost Fixed selling cost 396,000 504,000 Net disadvantage of closing the plant $ 579,750 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 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 quoted by the outside manufacturer. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Variable manufacturing costs Fixed manufacturing overhead cost202,500.00 Variable selling expense Total costs avoided 1,809,000.00 102,000.00 2,113,500.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Agile Auditing Transforming The Internal Audit Process

Authors: Rick A. Wright Jr. CIA

1st Edition

1634540689, 978-1634540681

More Books

Students also viewed these Accounting questions