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Answer questions 4-6, thank you. Unit Price ALPHA $120 BETA $80 Average cost per unit at 100,000 units Variable Cost per Unit: Manufacturing Direct Materials
Answer questions 4-6, 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. . 4. Assume that the company expects to sell 85,000 Betas during the current year. One of the company's customers has offered to buy an additional 5,000 units at a price of $49 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? 5. Assuming that the company normally produces 85,000 Betas per year. What is the financial advantage/disadvantage of discontinuing the Beta product line? 6. Assuming that the company normally produces 45,000 Betas per year. What is the financial advantage/disadvantage of discontinuing the Beta product line? Accrime that ha Step by Step Solution
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