Question
# 1-What is the total amount of traceable fixed manufacturing overhead for the Alpha product line and for the Beta product line? 2-What is the
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1-What is the total amount of traceable fixed manufacturing overhead for the Alpha product line and for the Beta product line?
2-What is the companys total amount of common fixed expenses?
3-Assume that Cane expects to produce and sell 93,000 Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 23,000 additional Alphas for a price of $132 per unit. If Cane accepts the customers offer, how much will its profits increase or decrease?
4-Assume that Cane expects to produce and sell 103,000 Betas during the current year. One of Canes sales representatives has found a new customer that is willing to buy 2,000 additional Betas for a price of $61 per unit. If Cane accepts the customers offer, how much will its profits increase or decrease?
5-Assume that Cane expects to produce and sell 108,000 Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 23,000 additional Alphas for a price of $132 per unit. If Cane accepts the customers offer, it will decrease Alpha sales to regular customers by 12,000 units. Calculate the incremental net operating income if the order is accepted? (Loss amount should be indicated with a minus sign.) Based on your calculations above should the special order be accepted?
could you please solve eeach Q with clear explanation and steps?
Cane Company manufactures two products called Alpha and Beta that sell for $185 and $150, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 119,000 units of each product. Its unit costs for each product at this level of activity are given below: Alpha 40 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses 20 28 25 28 Beta 24 28 18 31 21 23 Total cost per unit 174 145 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollarsStep by Step Solution
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