a. Calculate the incremental net operating income if the order is accepted? (Loss amount should be indicated with a minus sign.) b. Based on your calculations above should the special order be accepted? 6. Assume that Cane normally produces and sells 93,000 Betas per year. If Cane discontinues the Beta product line, how much will profits increase or decrease? 7. Assume that Cane normally produces and sells 43,000 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 63,000 Betas and 83,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 18,000 units. If Cane discontinues the Beta product line, how much would profits increase or decrease? 9. Assume that Cane expects to produce and sell 83,000 Alphas during the current year. A supplier has offered to manufacture and deliver 83,000 Alphas to Cane for a price of $92 per unit. If Cane buys 83,000 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 53,000 Alphas during the current year. A supplier has offered to manufacture and deliver 53,000 Alphas to Cane for a price of $92 per unit. If Cane buys 53,000 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.) |