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Andretti Company has a single product called a Dak. The company nomally produces and sells 85,000 Daks each year at a selling price of $48 per unit. The company's unit costs at this level of activity are given below. $ 7.50 10.00 2.90 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit 4.00 (5340,000 total) 450 (382,500 total) 3.70 5 3260 4 Due to a s e in its suppliers plant. Andretti Company is unable to purchase more material for the production or Daks. The strike is expected to last or two months. Andretti Company has enough material on hand to operate at 25% of normal e els tor the two-month period. As an alternative. Andretti could cose its plant down entirety for the wo months. If the plant were closed, t ed manufacturing overhead costs would continue at 40% of their normal level during the two month pen d and the e sean expenses would e reduced by 20% what would be e impact on pronts of ck sin the plan for he two-month end Any osses should be indicated by a minus s n R un all ca ulations (intermediate and final) to whole numbers. Round unit calculations to whole numbers.) Contribution margin lost Fixed costs Fixed manufacturing overhead cost Fixed selling cost Net advantage (disadvantage) of closing the plant 5. An outside manufacturer has ofmered to produce Daks and ship them directly to Andrettrs customers. It Andretti Company accepts this ofter, the facilities that it uses to produce Daks would be idie; however, foxed manufacturing overhead costs would be educed by 30% Because the outside manufacturer would pay for all shipping costs, the variable selling expenses would be on y two-thirds of their present amount ompute the unit cost that can be avoided if purchased from the outside manufacturer. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Variable manufacturing costs Fixed manufacturing overhead cos: Variable selling expense Total costs avoided 0.00

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