Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5,6,8,9 and 10 $ 24 Required information [The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta

image text in transcribedimage text in transcribed
image text in transcribed
5,6,8,9 and 10
image text in transcribed
$ 24 Required information [The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $155 and $115, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 110,000 units of each product. Its average cost per unit for each product at this level of activity are given below. Alpha Beta Direct naterials $ 12 Direct labor 23 26 Variable manufacturing overhead 22 12 Traceable fixed manufacturing overhead 23 25 Variable selling expenses 19 15 Connon fixed expenses 22 17 Total cost per unit $ 133 $ 107 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. 5. Assume that can expects to procura de 102.000 inhas cuning the current year. One of Consoles representes found new customer who is willing to buy 17000 ton Alphas for a price of sto per unit, however puting this opportunity wil decrease in sales to regular customers by 9.000 a What is the coverage of accepting the new customer's order? t Based on your calculations above should the social order be accepted Anwer is not complete Complete this question by entering your answers in the the below. SA Wow the ancial stape (divoko certo the new customer's order? 8. Assume that cane nomaly produces and ses 97000 Bets per year. What is the financial advantage disadvantage of discontinuing the Bets product line? 3. Assume that are normal proces and sells 67000 lietas and 87,000 Alphas per you Cane discontinues in Buta product in its sales representatives could increase sweetha by 1000 unts. What is the facial advantage disadvantage of dsconting the Beta product ne? 9. Assume Care expects to produce and se 7000 Alphas during the current yow A supplier has offered to manufacture and de ver 87.000 has to Cane for a price of Open What is the financial advantage advantage of buying $7,000 units from the supplier instead of making those ? 10. Assume that can expects to produce and 52000 Ach during the current yet A supplier has offered to manufacture and deliver 57000 Alhas to Cane for a price of $10 per unit with financial advantage disadvantage of buying 57000 units from the supplier ned of making those units Required information (The following information applies to the questions displayed below.) Cane Company manufactures two products called Alpha and Beta that sell for $155 and $115, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 110,000 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 Connon fixed expenses Total cost per unit Alpha $ 24 23 22 23 19 22 $ 133 Beta $ 12 26 12 25 15 17 $ 107 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. 5. Assume that can expects to produce and soul 102.000 Alpha Guring the current year One of Cane's sales representatives tas found a new customer who is willing to buy 17000 additional Aiphos for price of 5108 per unit however pursuing this opponunity wil decrease Alpha sales to regular customers toy 9.000 Wriotismenost overtage davantage of accepting the new customer's order? b Based on your columns bove should the special order be accepted Answer is not complete Complete this question by entering your answers in the tabs below SA what is the trendu avantage (sadvantage of accepting the new customer onder? 6. Assume that Cane normally produces and sets 97000 Betis per year. What is the financial novantage (disadvantage of discontinuing the Beta product line? 8. Assume that Cane normally produces and sells 67000 Betas and 97000 Aiphas per year. Cane discontinues the Seta product ne, its sales representatives could increase sales of Alpha by 11000 units. What is the financial advantage (disadvantage of discontinuing the Bet product line? 9. Assume that can expects to produce and sell 87000 Alphas during the current your A suppler has offered to manufacture and deliver 17.000 Alphas to Cane for a price of $10 per unit. What is the financial advantage advantage of buying 87.000 units from the supplier instead of making those unt? 10. Assume that can expects to produce and sell 57,000 Alphas during the current year A Supplier has led to manufacture and deliver 57.000 Alphas to Cane for a price of $108 perunt. What is the financial advantage disadvantage of buying 57000 units from the supervistead of making those units

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Fundamental accounting principle

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

21st edition

978-0078025587

Students also viewed these Accounting questions