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this is all part of one question. please answer asap. thanks Andrefti Company has a single product called a Dak. The company normally produces and
this is all part of one question. please answer asap. thanks
Andrefti Company has a single product called a Dak. The company normally produces and sells 90,000 Daks each year at a selling price of $58 per unit. The company's unit costs at this level of activity are given below: 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 126,000 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 40% above the present 90,000 units each year if it were willing to increase the fixed selling expenses by $130,000. What is the financial advantage (disadvantage): of investing an additional $130,000 in fixed selling expenses? 1-b. Would the additional investment be justified? 2 Assume again that Andretti Company has sufficient capacity to produce 126,000 Daks each year A customer in a foreign market wants to purchase 36,000 Daks. If Andretti accepts this order it would have to pay import duties on the Daks of $270 per unit and an additional $28,800 for permits and licenses. The only selling costs that would be associated with the order would be $220 per unit shipping cost. What is the break-even price per unit on this order? 3. The company has 600 Daks on hand that have some irregularities and are therefore considered to be "seconds."Due ta-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 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% during the two-month period. a. How much total contribution margin will Andretti forgo if it closes the plant for two months? b. How much total fixed cost will the company avoid if it closes the plant fortwo months? c. What is the financial advantage (disadvantage) of closing the plant for the two-month period? d. Should Andretti close the plant for two months? 5. An outside manufacturer has offered to produce 90,000 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 twothirds of their present amount. What is Andretti's avoidable cost per unit that it should compare to the price quoted by the outside manufacturer? Complete this question by entering your answers in the tabs below. Assume that Andretti Company has sufficient-capacity to produce 126,000 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its-unit sales by 40% above the present 90,000 units each-year if it were willing to increase the fixed selling expenses by $130,000. What is the financial advantage (disadvantage) of investing an additional $130,000 in fixed selling expenses? 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 $58 per unit. The company's unit costs at this level of activity are given below: 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 126,000 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 40% above the present 90,000 units each year if it were willing to increase the fixed selling expenses by $130,000. What is the financial advantage (disadvantage) of investing an additional 2. Assume again that Andretti Company has sufficient-capacity to produce 126,000 Daks each year A customer in a foreign market wants to purchase 36,000 Daks. If Andretti accepts this order it would have to pay import duties an the Daks of $270 per unit and an additional $28,800 for permits and licenses. The only selling costs that would be associated with the order would be $220 per unit shipping cost What is the break-even price per unit on this order? 3. 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? 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 35% of their normal level during the two-month period and the fixed selling expenses would be a. How much total contribution margin will Andretti forgo if it closes the plant for two months? b. How much total fixed cost will the company avoid if it closes the plant for two months? c. What is the financial advantage (disadvantage) of closing the plant for the two-month period? 5. An outside manufacturer has offered to produce 90,000 Daks and ship them directly to Andretti's customers. If Andretti Company reduced by 30%. Because the outside manufacturer would pay for all shipping costs, the variable selling expenses would be only two- Complete this question by entering your answers in the tabs below. per unit and an additional $28,800 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 answer to 2 decimal 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 $58 per unit. The company's unit costs at this level of activity are given below: 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 126,000 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 40% above the present 90,000 units each year if it were willing to increase the fixed selling expenses by $130,000. What is the financial advantage (disadvantage) of investing an additional $130,000 in fixed selling expenses? 1-b. Would the additional investment be justifled? 2. Assume again that Andretti Company has sufficlent capacity to produce 126,000 Daks each year. A customer in a foreign market wants to purchase 36:000 Daks. If Andretti accepts this order it would have to pay import duties on the Daks of $270 per anit and an additional $28,800 for permits and licenses. The only selling costs that would be associated with the of der would be $220 per-unit shipping cost What is the break-even price per unit on this order? 3. The company has 600 Daks on hand that have some irregularities and are therefore considered to-be "seconds "-Due to fhe irregularities, it will be impossible to sell these units at the normal price through regular distribution chamnels. What is the unit cost figure that is relevant for setting a minimum selling price? 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 materlal on hand to operate at 25%. of normal levels for the two-monith period. As an alternative, Andretti could dose 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 expenseswould be reduced by 20% during the two-month period. a. How much total contribution margin will Andretti forgo if it closes the plant for two months? b. How much total fixed cost will the company avoid if it closes the plant for two months? c. What is the financial advantage (disadvantage) of closing the plant for the two-month period? d. Should Andretti close the plant for two months? 5. An outside manufacture has offered to produce 90,000 Daks and ship them directly to Andrettis customers. If Andrefti 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 twothirds of their present amount What is Andretti's avoidable cost per unit that it should compare to the price quoted by-the outside manufacturer? Complete this question by entering your answers in the tabs below. 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 channrels, What is the unit cost figure that is relevant for setting a minimum selling price? (Round your answer to 2 decimal places.) 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 $58 per unit. The company's unit-costs at this level of activity are given below: 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 126,000 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 40% above the present: 90,000 urits each year if it were willing to increase the fixed selling expenses by $130.000. What is the financial advantage (disadvantage) of investing an additional $130,000 in fixed selling expenses? 1-b. Would the additional investment be justified? 2. Assume again that Andretti Company has sufficient capacity to produce 126,000 Daks each year. A customer in a foreign market wants to purchase 36.000 Daks I Andretti accepts this order it would have to pay import duties on the Daks of $270 per unit and an additional $28.800 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? 3. The company has 600 Daks on hand that have some irregularities and are therefore considered to be "seiconds. "Die 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 supplier's plant, Andretti Company is unable to purchase more material for the procuction of Daks. The strike is expected to last for two months. Andretti Company has enough material on hand to operate at 25% of normalievels for the two-month period. As an alternative, Andretticould close its plant down entirely for the two months. If the plant were closed; fixed manufacturing. overhead costs would continue ot 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. a. How much total contribution margin will Andretti forgo if it closes the plant for two months? b. How much total fixed cost will the company avoid if it closes the plant for two months? c. What is the financial advantage (disadvantage) of closing the plant for the two-month period? d. Should Andretti close the plant for two months? 5. An outside manufacturer has offered to produce 90,000 Daks and ship them directly to Andretti's cstomers. If Andretti Company accepts this offer, the facilities that it uses to produce Daks would be idle, however, fixed mariufacturing overhead casts would be reduced by 30%. Because the outside manufacturer would pay for all shipping costs, the variable seilling expenses would be onfy tway thirds of their present amount. What is Andretti's avoidable cost per unit that it should compare to the price quoted by the outside manufacturer? Complete this question by entering vour answers in the tabs below. 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 dose 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. (Round number of units produced to the nearest whole number. Round your intermediate calculations and final answers to 2 decimal places. Any losses/reductions should be indicated by a minus sign.) a. How much total contribution margin will Andretti forgo if it closes the plant for two months? b. How much total fixed cost will the company avoid if it closes the plant for two months? c. What is the finandial advantage (disadvantage) of closing the plant for the two-month period? 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 $58 per unit The company's unit costs at this level of activity are given below: A number of questions relating to the production and sale of Daks follow. Each question is independent. Required: 1-a. Assume that Andretii Company has sufficient capacity to produce 126,000 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 40% above the present 90,000 units each year if it were willing to increase the fixed selling expenses by $130.000. What is the financial advantage (disadvantage) of investing an additional 5130.000 in fixed selling expenses? 1-b. Would the additional investiment be justified? 2. Assume again that Andretti Company has sufficient capacity to produce 126,000 Daks each year A customer in a foreign market wants to purchase 36,000 Daks. If Andretti accepts this order it would have to pay import dutles on the Daks of $270 per unit and an additional $28,800 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? 3. 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? 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 normallevels 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% during the two-month period. a. How much total contribution margin will Andretti forgo if it closes the plant for two months? b. How much total fixed cost will the company avoid if it closes the plant for two months? c. What is the financial advantage (disadvantage) of closing the plant for the two-month period? d. Should Andretti close the plant for two months? 5. An outside manufacturer has offered to produce 90,000 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 twothirds of their present amount. What is Andretti's avoidable cost per unit that it should compare to the price quoted by the outside manufacturer? Complete this question by entering your answers in the tabs below. An outside manufacturer has offered to produce 90,000 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. What is Andretti's avoidable cost per unit that it should compare to the price quoted by the outside manufacturer? (Do not round intermediate calculations. Round your answen to 2 decimal places.)Step by Step Solution
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