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 The company normally produces and sets 6

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 The company normally produces and sets 6.000 Dakes each year at seling price of $56 per unit The company's unit costs at this level of activity are given below Direct material Direct laber Variable manufacturing over Fixed manufacturing overhead Variable selling expenses led selling expenses Total cost per unit $ 7.58 H. 2. 9.00 (5276,000 total) 1.70 45387,00 total) $15.30 . A number of questions relating to the production and sale of Disks follow. Each questions independent Required: 1a. Assume that Andretti Company has suficient capacity to produce 115.100 Daks each year without any increase in the manufacturing overhead costs. The company could increase its unit sales by 355 above the present 86000 units each year if it were willing to increase the fixed selling expenses by $100000 What is the financial advantage disadvantage of investing an additional $100.000 in fixed selling expenses? 15 Would the additional investment be justified? 2. Assume again that Andrett Company has sufficient capacity to produce 116 100 Daks each year. A customer na foreign market wants to purchase 30.900 Daks It Andretti accepts this order it would have to pay import duties on the Daks of 52.70 per unit and an additional $15.050 for permits and licenses. The only selling costs that would be associated with the order would be $2.30 per unit shipping cost. What is the break-even price per unit on this arder 3. The company has 900 Daks on hand that have some irregularities and are therefore considered to seconde Due to me time to the the mal in the tribal Whimini
Check my work The company has 900 Dals on hand that have some irregularities and are therefore considered to be 'seconds. Due to me irregularities will be impossible to sell these units at the normal price through regular distribution channels. What is the unit cont 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, Andretts 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 fored selling expenses would be reduced by 20% during the two month period a How much total contribution margin will Andretti Fargo if it closes the plant for two months? How much totalfixed cost will the comparvy avoid if it closes the plant for two months? What is the financial advantage (disattivantage) 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 86,000 Daks and ship them directly to Andrets customers. If Andretti Company accepts this offer, the facilities that uses to produce Daks would be idle, however, fed manufacturing overhead costs would be reduced by 30%. Because the outside manufacturer would pay for all shipping costs, the vanable telling expenses would be only two thirds of their present amount. What is Andrettsavoidable cost per unit that it should come to the price quoted by the outside manufacturer Complete this question by entering your answers in the tabs below. Req Real R2 R40 ROGA 40 Rou Due to a strike in its supplier's plant, Andretti Company is unable to purchase more material for the production of Daks.