please do the yellow cells

3) Due to a strike in its supplier's plant, Jawal Co. is unable to purchase more material for the production of Phonos. The strike is expected to last for two months. Jawal Co. has enough material on hand to operate at 25% of normal levels for the two-month period. As an alternative, Jawal Co. 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) - Show both long & short solutions (14 points) - SHOULD THE COMPANY SELL FOR 2 MONTHS OR CLOSE DOWN? (2 points) Continue to Long Approach Solution close the plant Explanation Sales Operate 143,000 81,575 61,425 sales is old sales/12*25% of operation 2 months* selling price 5% of operations variable expense (3250 is the quantity, 25% of operation: Variable expenses Contribution margin Fixed expenses: Fixed manufacturing overhead cost: 22,750 25% of operatyion * Fixed MOH 40% of fixed MOH sales fixed MOH rate 2 months/12 36.400 Fixed selling expense: 14,625 Total fixed expenses 37,375 25% OF OPERATIONS *F SELL EXPENSE 46,8001 0-20)% OF FIXED SELL EXPENSE FIXED SELL EXPENSE RATE 2 MONTHS/ 83,200 -83,200 -107,250 Net operating income (loss) 24,050 Short Approach Solution Amount $ Amount $ 61,425 Contribution margin lost Fixed costs Fixed manufacturing overhead cost Fixed selling cost Net advantage of closing the plant -36,400 -46,800 -83,200 -21,775 - SHOULD THE COMPANY SELL FOR 2 MONTHS OR CLOSE DOWN? Why? The company should stay open as shutting down results in a net loss of 21775