Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

11. How many pounds of raw material are needed to make one unit of each of the two products? 12. What contribution margin per pound

11. How many pounds of raw material are needed to make one unit of each of the two products?
12. What contribution margin per pound of raw material is earned by each of the two products?
13. Assume that Canes customers would buy a maximum of 96,000 units of Alpha and 76,000 units of Beta. Also assume that the raw material available for production is limited to 246,000 pounds. How many units of each product should Cane produce to maximize its profits?
14. Assume that Canes customers would buy a maximum of 96,000 units of Alpha and 76,000 units of Beta. Also assume that the raw material available for production is limited to 246,000 pounds. What is the total contribution margin Cane Company will earn?
15. Assume that Canes customers would buy a maximum of 96,000 units of Alpha and 76,000 units of Beta. Also assume that the companys raw material available for production is limited to 246,000 pounds. If Cane uses its 246,000 pounds of raw materials, up to how much should it be willing to pay per pound for additional raw materials?
image text in transcribed
Help Save Required information The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $215 and $160, respectively. Each product uses only one type of raw material that costs $7 per pound. The company has the capacity to annually produce 125,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $ 42 35 23 31 28 31 $ 190 Beta $ 21 28 21 34 24 26 $ 154 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 2. What is the company's total amount of common fixed expenses? Total common fixed expenses

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Employee Motivation Audit

Authors: Jane Weightman

1st Edition

0955970709, 978-0955970702

More Books

Students also viewed these Accounting questions

Question

Identify and control your anxieties

Answered: 1 week ago

Question

Understanding and Addressing Anxiety

Answered: 1 week ago