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Hallas Company manufactures a fast-bonding glue in its Northwest plant. The company norrally produces and sells 40,000 galions of the glue each month, This glue, which is known as M1-7, is used in the wood industry to manufacture plywood. The selling price of MJ-7 is $35 per gallon, variable production costs are $21 per gallon, fixed manufacturing overhead costs in the plant total $230,000 per month, and fixed selling costs total $310,000 per month. Strikes in the plywood mills that purchase the bulk of MJ-7 glue have caused Hallas Companys sales to temporarily drop to only 11.000 gallens per month. Hailas Company manogement estimates that the strikes will last for two months, after which sales of MI-7 will retiern to normal. Due to the curreat low level af sales, Hallas Company management is thinking about closing down the Norttwest plant duting the sirike. If Halias Company does close down the Northwest plant, fxed manufacturing overhead costs can be reduced by 560,000 per month and fixed selfing costs can be reduced by 10%, Start-up costs at the end of the shutdown period would total $14,000. Since Hallas uses lean production methods, no inventories are on hand. What is Hallas Company's income in a normal month, i.e. one in which it sells 40,000 gallons on My-7? What will Hallas Companys loss be if it elects to operate the plant during the two months of strikes? Enter your answer as a posithe namber. What will Hallas Combany's loss be if it elects to close the plant for the two months of strikes and restart it as of the end of the second month? Enter your answer as a positive number. Should Hallas close the plant for two months? Yes or No? What is the net advantage (or disadvantage) to Hallas Company in closing down the plant for two months? Enter your answer as a positive number. At what level of unit sales volume for the two months is Hallas Compary indifferent between closing the plant and keeping it open

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