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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
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 107000 units of each product. Its unit costs for each product at this level of activity are given Direct materials Direct labor Varlable manufacturing overheed Traceable foed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unt Alpha Beta $30 10 20 10 23 13 15 $125 S 91 25 12 21 20 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. What is the total amount of traceable fixed manufacturing overhead for the Alpha product line and for the Beta product line? Alpha Beta Traceable fixed manufacturing overhead What is the company's total amount of common fixed expenses? Assume that Cane expects to produce and sell 85,000 Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 15,000 additional Alphas for a price of $100 per unit. If Cane accepts the customer's offer, how much will its profits increase or decrease? et operating income by
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