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Business, 23.12.2019 17:31 bebo14

Direct materials $ 9.50 direct labor 12.00 variable manufacturing overhead 3.30 fixed manufacturing overhead 6.00 ($738,000 total) variable selling expenses 2.70 fixed selling expenses 5.50 ($676,500 total) total cost per unit $ 39.00 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 159,900 daks each year without any increase in fixed manufacturing overhead costs. the company could increase its unit sales by 30% above the present 123,000 units each year if it were willing to increase the fixed selling expenses by $140,000. what is the financial advantage (disadvantage) of investing an additional $140,000 in fixed selling expenses? 1-b. would the additional investment be justified? 2. assume again that andretti company has sufficient capacity to produce 159,900 daks each year. a customer in a foreign market wants to purchase 36,900 daks. if andretti accepts this order it would have to pay import duties on the daks of $2.70 per unit and an additional $25,830 for permits and licenses. the only selling costs that would be associated with the order would be $2.20 per unit shipping cost. what is the break-even price per unit on this order?

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