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A) Assume that Cane expects to produce and sell 92,000 Betas during the current year. One of Canes sales representatives has found a new customer

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A) Assume that Cane expects to produce and sell 92,000 Betas during the current year. One of Canes sales representatives has found a new customer who is willing to buy 2,000 additional Betas for a price of $41 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order?

B)Assume that Cane normally produces and sells 92,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line?

C)Assume that Cane expects to produce and sell 82,000 Alphas during the current year. A supplier has offered to manufacture and deliver 82,000 Alphas to Cane for a price of $88 per unit. What is the financial advantage (disadvantage) of buying 82,000 units from the supplier instead of making those units?

D)How many pounds of raw material are needed to make one unit of each of the two products?

E)What contribution margin per pound of raw material is earned by each of the two products? (Round your answers to 2 decimal places.)

F) Assume that Canes customers would buy a maximum of 82,000 units of Alpha and 62,000 units of Beta. Also assume that the companys raw material available for production is limited to 162,000 pounds. How many units of each product should Cane produce to maximize its profits?

Required information The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $130 and $90, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 102,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta $10 21 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses $ 25 17 18 14 17 $113 20 10 12 $80 Total cost per unit 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

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