Hello,

can you please help me answer these 5 questions?

thank you in advance.

QUESTION 1: Andretti Company has a single product called a Dak. The company normally produces and sells 81,000 Daks each year at a selling price of $46 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 $ 3.00 7.00 ($567,000 total) 2.70 Fixed selling expenses Total cost per unit 8.50 11.00 3.50 $ ($283,500 total) 35.70 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 101,250 Daks each year without any i manufacturing overhead costs. The company could increase its sales by 25% above the present 81,000 units each year if it were willing to increase the fixed selling expenses by $120,000. Calculate t he incremental net operating income. (Round all dollar amounts to 2 decimal places.) 1-b. Would the increased fixed selling expenses be justified? Yes No 2. Assume again that Andretti Company has sufficient capacity to produce 101,250 Daks each year. A customer in a foreign market wants to purchase 20,250 Daks. Import duties on the Daks would be $2.70 per unit, and costs for permits and licenses would be $12,150. The only selling costs that would be associated with the order would be $1.50 per unit shipping cost. Compute the per unit break-even price on this order. (Round 2 decimal places.) 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 unit cost figure is relevant for setting a minimum selling price? (Round your answer to 2 decimal places.) 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%. 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.) 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 80%. 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.) QUESTION 2: Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniorshome nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Home Nursing Meals On Wheels Housekeeping $921,000 $264,000 $407,000 $250,000 455,000 113,000 190,000 152,000 466,000 151,000 217,000 98,000 69,300 8,700 40,300 20,300 43,100 20,300 7,500 15,300 116,200 40,800 38,600 36,800 184,200 52,800 81,400 50,000 122,600 167,800 122,400 $ 28,400 $ 49,200 $ (24,400) Total Reven ues Variabl e expense s Contrib ution margin Fixed expense s: Depre ciation Liabili ty insuranc e Progr am administ rators' salaries Gener al administ rative overhea d* Total fixed expense s Net operatin g 412,800 $ 53,200 income (loss) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, is concerned about the organization's finances and considers the net operating income of $53,200 last year to be razor-thin. (Last year's results were very similar to the results for previous years and are representative of what would be expected in the future.) She feels that the organization should be building its financial reserves at a more rapid rate in order to prepare for the next inevitable recession. After seeing the above report, Ms. Miyama asked for more information about the financial advisability of perhaps discontinuing the housekeeping program. The depreciation in housekeeping is for a small van that is used to carry the housekeepers and their equipment from job to job. If the program were discontinued, the van would be donated to a charitable organization. None of the general administrative overhead would be avoided if the housekeeping program were dropped, but the liability insurance and the salary of the program administrator would be avoided. Required: 1-a. What is the impact on net operating income by discontinuing housekeeping program? (Decreases should be indicated by a minus sign.) 1-b. Should the housekeeping program be discontinued? Yes No 2-a. Prepare a segmented income statement. 2-b. Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services. Yes No QUESTION 3: Silven Industries, which manufactures and sells a highly successful line of summer lotions and insect repellents, has decided to diversify in order to stabilize sales throughout the year. A natural area for the company to consider is the production of winter lotions and creams to prevent dry and chapped skin. After considerable research, a winter products line has been developed. However, Silven's president has decided to introduce only one of the new products for this coming winter. If the product is a success, further expansion in future years will be initiated. The product selected (called Chap-Off) is a lip balm that will be sold in a lipstick-type tube. The product will be sold to wholesalers in boxes of 24 tubes for $8 per box. Because of excess capacity, no additional fixed manufacturing overhead costs will be incurred to produce the product. However, a $104,000 charge for fixed manufacturing overhead will be absorbed by the product under the company's absorption costing system. Using the estimated sales and production of 130,000 boxes of Chap-Off, the Accounting Department has developed the following cost per box: Direct materials Direct labor Manufacturi ng overhead Total cost $ 3.50 2.20 1.60 $ 7.30 The costs above include costs for producing both the lip balm and the tube that contains it. As an alternative to making the tubes, Silven has approached a supplier to discuss the possibility of purchasing the tubes for Chap-Off. The purchase price of the empty tubes from the supplier would be $1.40 per box of 24 tubes. If Silven Industries accepts the purchase proposal, direct labor and variable manufacturing overhead costs per box of Chap-Off would be reduced by 10% and direct materials costs would be reduced by 25%. Required: 1a. Calculate the total variable cost of producing one box of Chap-Off. (Do not round intermediate calculations. Round your answer to 2 decimal places.) 1b. Assume that the tubes for the Chap-Off are purchased from the outside supplier, calculate the total variable cost of producing one box of Chap-Off. (Do not round intermediate calculations. Round your answer to 2 decimal places.) 1c. Should Silven Industries make or buy the tubes? Make Buy 2. What would be the maximum purchase price acceptable to Silven Industries? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 3. Instead of sales of 130,000 boxes, revised estimates show a sales volume of 160,000 boxes. At this new volume, additional equipment must be acquired to manufacture the tubes at an annual rental of $40,000. Assume that the outside supplier will not accept an order for less than 160,000 boxes. a. Calculate the total relevant cost of making 160,000 boxes and total relevant cost of buying 160,000 boxes. (Do not round intermediate calculations.) b. Based on the above calculations, should Silven Industries make or buy the boxes? Make Buy 4. Refer to the data in (3) above. Assume that the outside supplier will accept an order of any size for the tubes at $1.40 per box. Which of these is the best alternative? Make all 160,000 boxes Buy all 160,000 boxes Make 130,000 boxes and buy 30,000 boxes Make 80,000 boxes and buy 80,000 boxes QUESTION 4: Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The company's discount rate is 18%. After careful study, Oakmont estimated the following costs and revenues for the new product: Cost of equipment needed Working capital needed Overhaul of the equipment in two years Salvage value of the equipment in four years $ 220,000 $ 81,000 $ 7,500 $ 10,500 Annual revenues and costs: Sales revenues Variable expenses Fixed out-of-pocket operating costs $ 370,000 $ 180,000 $ 82,000 When the project concludes in four years the working capital will be released for investment elsewhere within the company. Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables. Required: Calculate the net present value of this investment opportunity. (Use the appropriate table to determine the discount factor(s).) QUESTION 5: The management of Revco Products is exploring four different investment opportunities. Information on the four projects under study follows: Because the company's required rate of return is 12%, a 12% discount rate has been used in the present value computations above. Limited funds are available for investment, so the company can't accept all of the available projects. Required: 1. Compute the project profitability index for each investment project. (Round your answers to 2 decimal places.) 2. Rank the four projects according to preference, in terms of net present value, project profitability index and internal rate of return