Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can you answer these 5 for me plz? Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105, respectively. Each

can you answer these 5 for me plz? image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107,000 units of each product. Its average cost per unit for each product at this level of activity are given below: The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products bated on sales dollars. Required: 1. What is the total amount of traceable fixed manufacturing overhead for each of the two products? Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107,000 units of each product. Its average cost per unit for each product at this level of activity are given below. 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. 2. What is the company's total amount of common fixed expenses? Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107,000 units of each product. Its average cost per unit for each product at this level of activity are given below: 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. Assume that Cane expects to produce and sell 85,000 Alphas during the current year. One of Cane's sales representatives has ound a new customer who is willing to buy 15,000 additional Alphas for a price of $100 per unit. What is the financial advantage disadvantage) of accepting the new customer's order? Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107,000 units of each product. Its average cost per unit for each product at this level of activity are given below: 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. Assume that Cane expects to produce and sell 95,000 Betas during the current year. One of Cane's sales representatives has found new customer who is willing to buy 5,000 additional Betas for a price of $44 per unit. What is the financial advantage (disadvantage) f accepting the new customer's order? 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 Cane expects to produce and sell 100,000 Alphas during the current year. One of Cane'Isales representatives has found a new customer who is willing to buy 15,000 additional Alphas for a price of $100 per unit, however pursuing this opportunity will decrease Alpha sales to regular customers by 8,000 units. a. What is the financial advantage (disadvantage) of accepting the new customer's order? b. Based on your calculations above should the special order be accepted

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Accounting For Managers Financial Accounting

Authors: Morusu Sivasankar

1st Edition

6200624909, 978-6200624901

More Books

Students also viewed these Accounting questions

Question

My opinions/suggestions are valued.

Answered: 1 week ago