Saved signment 11-3 Week 11 Problems Problem 12-18 Relevant Cost Analysis in a Variety of Situations [LO12-2, LO12-3, LO12-4] Andretti Company has a single product called a Dak. The company normally produces and sells 82,000 Daks each year at a selling price of $40 per unit. The company's unit costs at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead $ 7.50 9.00 eBlook Print 3.20 ($246,000 Fixed manufacturing overhead 3.00 t 3.70 Variable selling expenses Fixed selling expenses Total cost per unit 4.50 ($369,000 $30.90 A number of questions relating to the production and sale of Daks follow. Each question is independent. r Required: ta. Assume that Andretti Company has sufficient capacity to produce 102,500 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit willing to increase the fixed selling expenses by $120,000. What is the financial advantage (disadvantage) of investing an $120,000 in fixed selling expenses? 1-b. Would the additional investment be justified? sales by 25% above the present 82000 units each yea