Cane Company manufactures two products called Alpha and Beta that sell for $165 and $130, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 113,000 units of each product. Its unit costs 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 deemed unavoidable and have been allocated to products based on sales dollars. Assume that Cane expects to produce and sell 89,000 Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 19,000 additional Alphas for a price of $116 per unit. If Cane accepts the customer's offer, how much will its profits increase or decrease? Assume that Cane expects to produce and sell 99,000 Betas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 2,000 additional Betas for a price of $48 per unit. If Cane accepts the customer's offer, how much will its profits increase or decrease? What contribution margin per pound of raw material is earned by Alpha and Beta? (Round your answers to 2 decimal places.) Assume that Cane's customers would buy a maximum of 89,000 units of Alpha and 69,000 units of Beta. Also assume that the company's raw material available for production is limited to 220,000 pounds. How many units of each product should Cane produce to maximize its profits? Assume that Cane's customers would buy a maximum of 89,000 units of Alpha and 69, Beta. Also assume that the company's raw material available for production is limited pounds. What is the maximum contribution margin Cane Company can earn given quantity of raw materials Cane Company manufactures two products called Alpha and Beta that sell for $165 and $130, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 113,000 units of each product. Its unit costs 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 deemed unavoidable and have been allocated to products based on sales dollars. Assume that Cane expects to produce and sell 89,000 Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 19,000 additional Alphas for a price of $116 per unit. If Cane accepts the customer's offer, how much will its profits increase or decrease? Assume that Cane expects to produce and sell 99,000 Betas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 2,000 additional Betas for a price of $48 per unit. If Cane accepts the customer's offer, how much will its profits increase or decrease? What contribution margin per pound of raw material is earned by Alpha and Beta? (Round your answers to 2 decimal places.) Assume that Cane's customers would buy a maximum of 89,000 units of Alpha and 69,000 units of Beta. Also assume that the company's raw material available for production is limited to 220,000 pounds. How many units of each product should Cane produce to maximize its profits? Assume that Cane's customers would buy a maximum of 89,000 units of Alpha and 69, Beta. Also assume that the company's raw material available for production is limited pounds. What is the maximum contribution margin Cane Company can earn given quantity of raw materials
