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Check my work 2 Andretti Company has a single product called a Dak. The company normally produces and sells 88,000 Daks each year at a selling price of $62 per unit. The company's unit costs at this level of activity are given below Sinta Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit 5 7.50 10.00 2.00 7.00 (5616,000 total) 2.70 4.50 (5396,000 total) 2.33.70 tetence 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 114 400 Daks each year without any increase in fored manutacturing overhead costs. The company could increase its unit sales by 30% above the present 88.000 units each year if it were willing to increase the foed selling expenses by S130.000. What is the financial advantage (disadvantages of investing an additional $130.000 in fixed selling expenses? 16. Would the additional investment be justified? 2. Asume again that Andretti Company has sufficient capacity to produce 114.400 Daks each year. A customer in a foreign market wants to purchase 26.400 Daks. If Andretti accepts this order it would have to pay import duties on the Daks of $370 per unit and an additional $15.840 for permits and licenses. The only selling costs that would be associated with the order would be $2.30 petit Shipping cost What is the break even price per unit on this order? 3. The company has 400 Dates on hand that have some irregularities and are therefore considered to be seconds Due to the tregularities, it will be impossible to sell these unds at the formal price through regular distribution channels What is the unit cost tique that is relevant for setting a minimum seling price 4. Due to a strike in its suppler's plant Andreu company is unable to purchase morate for the production of Daks. These tient for two months And Companion also the month Check my work 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 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 88.000 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 Andrettir's avoidable cost per unit that it should compare to the price quoted by the outside manufacturer? Dices Complete this question by entering your answers in the tabs below. Red IA Reg 40 Reg 2 Reg to Rega Red 4 to 40 Red Assume that Andretts Company has sufficient capacity to produce 114,400 Daks each year without any increase in fixed manufacturing overhead cost. The company could increase its unit sales by 30% above the present 5,000 units each year of it were willing to increase the fixed selling wxpenses by $130.000, What is the financial advantage (santage of investing an additional $130.000 in dingen