Cane Company manufactures two products called Alpha and Beta that sell for $195 and $150, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 123,000 units of each product. Its unit costs for each product at this level of activity are given below: Alpha Beta Direct materials $ 40 $ 15 Direct labour 34 28 Variable manufacturing overhead 20 Traceable fixed manufacturing overhead 30 33 Variable selling expenses 23 Common fixed expenses 25 Cost per unit $183 $144 22 27 30 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. Required: 1. 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 Cane Company manufactures two products called Alpha and Beta that sell for $195 and $150, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 123,000 units of each product. Its unit costs for each product at this level of activity are given below: Alpha $ 40 34 22 30 27 30 $183 Direct materials Direct labour Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Cost per unit M Beta $ 15 28 20 33 23 25 NOM $144 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. 2. What is the company's total amount of common fixed expenses? Total common fixed expenses Cane Company manufactures two products called Alpha and Beta that sell for $195 and $150, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 123,000 units of each product. Its unit costs for each product at this level of activity are given below: Alpha Beta Direct materials $40 Direct labour 34 Variable manufacturing overhead 22 20 Traceable fixed manufacturing overhead 30 Variable selling expenses 27 Common fixed expenses Cost per unit $ 15 28 30 $183 33 23 25 $144 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. 3. Assume that Cane expects to produce and sell 95,000 Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 25,000 additional Alphas for a price of $140 per unit. If Cane accepts the customer's offer, how much will its profits increase or decrease? by Net operating income Cane Company manufactures two products called Alpha and Beta that sell for $195 and $150, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 123,000 units of each product. Its unit costs for each product at this level of activity are given below: Alpha Beta Direct materials $ 40 $ 15 Direct labour 28 Variable manufacturing overhead Traceable fixed manufacturing overhead 30 33 Variable selling expenses 23 Common fixed expenses $183 Cost per unit 34 22 20 27 30 25 $144 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. 4. Assume that Cane expects to produce and sell 105,000 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 $63 per unit. If Cane accepts the customer's offer, how much will its profits increase or decrease? by Net operating income apter 12: Assignant Serta Outdoor Luggage Inc. makes high-end, hard-sided luggage for sports equipment Data concerning three of the company's most pool models appear below SKI Goll FI Selling price per unit Guard Guard Guard Variable cost per unit $240 $310 $235 $ 8 5170 $ 55 Plastic injection moulding machine processing time required per unit 11 in BB Kgs of plastic pellets per unit 9 kg 6 KG 15 5 -Book Required: t-a. The total time available on the plastic injection moulding machine is the constraint in the production process. What is the contribution margin per unit of the constrained resources for Ski Guard, Golf Guard and Fishing Guard? SI Ouard Golf Selling price per unit Variable cost per unit Contribution margin per unit Plastic Injection molding machine processing time required to produce one unit Contribution margin per unit of the constrained resource $ 0 $ 00 minutes O per minute a per