7 Assume that Cane normally produces and sells 52,000 Betas per year If Cane discontinues the Beta product line, how much will profits increase or decrease 8 Assume that Cane normally produces and sells 72,000 Betas and 92,000 Alphas per year If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 12,000 units If Cane discontinues the Beta product line, how much would profits increase or decrease 9 Assume that Cane expects to produce and sell 92,000 Alphas during the current year A supplier has offered to manufacture and deliver 92,000 Alphas to Cane for a price of $128 per unit If Cane buys 92,000 units from the supplier instead of making those units, how much will profits increase or decrease 10 Assume that Cane expects to produce and sell 62,000 Alphas during the current year A supplier has offered to manufacture and deliver 62,000 Alphas to Cane for a price of $128 per unit If Cane buys 62,000 units from the supplier instead of making those units, how much will profits increase or decrease 11 How many pounds of raw material are needed to make one unit of Alpha and one unit of Beta 12 What contribution margin per pound of raw material is earned by Alpha and Beta (Round your answers to 2 decimal places ) 13 Assume that Canes customers would buy a maximum of 92,000 units of Alpha and 72,000 units of Beta Also assume that the companys raw material available for production is limited to 300,000 pounds How many units of each product should Cane produce to maximize its profits 14 Assume that Canes customers would buy a maximum of 92,000 units of Alpha and 72,000 units of Beta Also assume that the companys raw material available for production is limited to 300,000 pounds What is the maximum contribution margin Cane Company can earn given the limited quantity of raw materials 15 Assume that Canes customers would buy a maximum of 92,000 units of Alpha and 72,000 units of Beta Also assume that the companys raw material available for production is limited to 300,000 pounds Up to how much should it be willing to pay per pound for additional raw materials (Round your answer to 2 decimal places ) Cane Company manufactures two products called Alpha and Beta that sell for $180 and $145, respectively Each product uses only one type of raw material that costs $6 per pound The company has the capacity to annually produce 118,000 units of each product Its unit costs for each product at this level of activity are given below Alpha $ 36 32 Beta $ 24 27 19 17 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses 27 22 Total cost per unit $165 $140 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 dollars

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7. Assume that Cane normally produces and sells 52,000 Betas per year. If Cane discontinues the Beta product line, how much will profits increase or

7.	Assume that Cane normally produces and sells 52,000 Betas per year. If Cane discontinues the Beta product line, how much will profits increase or decrease?

8.	Assume that Cane normally produces and sells 72,000 Betas and 92,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 12,000 units. If Cane discontinues the Beta product line, how much would profits increase or decrease?

Assume that Cane expects to produce and sell 92,000 Alphas during the current year. A supplier has offered to manufacture and deliver 92,000 Alphas to Cane for a price of $128 per unit. If Cane buys 92,000 units from the supplier instead of making those units, how much will profits increase or decrease?

10.

Assume that Cane expects to produce and sell 62,000 Alphas during the current year. A supplier has offered to manufacture and deliver 62,000 Alphas to Cane for a price of $128 per unit. If Cane buys 62,000 units from the supplier instead of making those units, how much will profits increase or decrease?

11.	How many pounds of raw material are needed to make one unit of Alpha and one unit of Beta?

12.	What contribution margin per pound of raw material is earned by Alpha and Beta? (Round your answers to 2 decimal places.)

13.	Assume that Canes customers would buy a maximum of 92,000 units of Alpha and 72,000 units of Beta. Also assume that the companys raw material available for production is limited to 300,000 pounds. How many units of each product should Cane produce to maximize its profits?

14.

Assume that Canes customers would buy a maximum of 92,000 units of Alpha and 72,000 units of Beta. Also assume that the companys raw material available for production is limited to 300,000 pounds. What is the maximum contribution margin Cane Company can earn given the limited quantity of raw materials?

15.

Assume that Canes customers would buy a maximum of 92,000 units of Alpha and 72,000 units of Beta. Also assume that the companys raw material available for production is limited to 300,000 pounds. Up to how much should it be willing to pay per pound for additional raw materials? (Round your answer to 2 decimal places.)

Cane Company manufactures two products called Alpha and Beta that sell for $180 and $145, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 118,000 units of each product. Its unit costs for each product at this level of activity are given below: Alpha $ 36 32 Beta $ 24 27 19 17 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses 27 22 Total cost per unit $165 $140 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 dollars