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Answer Question 1-3, thank you. Unit Price ALPHA $120 BETA $80 Average cost per unit at 100,000 units Variable Cost per Unit: Manufacturing: Direct Materials
Answer Question 1-3, thank you.
Unit Price ALPHA $120 BETA $80 Average cost per unit at 100,000 units Variable Cost per Unit: Manufacturing: Direct Materials Direct Labor Variable manufacturing overhead Variable Selling expenses Total Variable Cost per Unit $30 $20 $7 $12 $69 $12 $15 $5 $8 $40 Traceable fixed manufacturing overhead Common fixed expenses (allocated on sales dollars) $16 $15 $18 $ 10 Total cost per unit $100 $68 The company can produce 100,000 of each product in the current year. . 1. What is the total amount of traceable fixed manufacturing cost for each product? 2. What is the company's total amount of common fixed expense? 3. Assume that the company expects to sell 85,000 Alphas during the current year. One of the company's customers has offered to buy an additional 10,000 units at a price of $85 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order Step by Step Solution
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