Cane Company manufactures two products called Alpha and Beta that sell for $120 and $80, respectively. Each product uses only one type of raw material that costs S6 per pound. The company has the capacity to annually produce 100.000 units of each product. Its unit costs for each product at this level of activity are given below: Alpha Beta Direct materials S 30 S12 Direct Inboor S 20 $15 S 7 $ 5 Varinble manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses S 16 SIS 512 S8 Common fixed expenses 515 STO Cost per unit 100 S63 The company considers its trnceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollies, Answer each question independently unless instructed otherwise.) Page 557 12-1 What is the total amount of traceable fixed manufacturing overhead for the Alpha product line and for the Beta product line? 12-2 What is the company's total amount of common fixed expenses? 12 3 Assume that Cane expects to produce and sell 80,000 Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 10,000 additional Alphas for a price of SSO per unit. If Cane accepts the customer's offer. how much will its profits increase or decrease? 12-4 Assume that Cane expects to produce and self 90,000 DES Surug me cufrent year. One of Cane's sales representatives has found a new customer that is willing to buy 5.000 additional Betas for a price of $39 per unit. If Cone accepts the customer's offer, how much will its profits increase or decrease? 125 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 10,000 additional Alphas for a price of $50 per unit. If Cane accepts the customer's offer, it will decrease Alpha sales to regular customers by 5,000 units, Should Cone accept this special order? 126 Assume that Cane normally produces and sells 90.000 Betss per year. If Cane discontinues the Bera product line, how much will profits increase or decrease 12-7 Assume that Cane normally produces and sells 40.000 Beras per year. If Cane discontinues the Beta product 12-7 Assume that Cane normally produces and sells 40.000 Betas per year. If Cane discontinues the Beta product line, how much will profits increase or decrease? 12 8 Assume that Cane normally produces and sells 60.000 Betas and 80,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 15.000 units. If Cane discontinues the Beta product line, how much would profits increase or decrease? 12 9 Assume that Cane expects to produce and sell 80.000 Alphas during the current year. A supplier has offered to manufacture and deliver 80.000 Alphas to Cane for a price of $80 per unit. If Cane buys 80,000 units from the supplier instead of making those units. how much will profits increase or decrease? 12 10 Assume that Cane expects to produce and sell 50.000 Alphas during the current year. A supplier has offered to manufacture and deliver 50,090 Alphas to Cane.fola possoperujt. If Cane buys 50,000 units from the supplier instead of making those units, how much will profits increase or decrease? 12-11 How many pounds of raw material are needed to make one unit of Alpha and one unit of Beta? 12-12 What contribution margin per pound of raw material is earned by Alpha and Beta? 12-13 Assume that Cane's customers would buy a maximum of 80.000 units of Alpha and 60.000 units of Beta. Also assume that the company's raw material available for production is limited to 160.000 pounds. How many units of each product should Cane produce to maximize its profits? 12-14 If Cane follows your recommendation in requirement 13. what total contribution margin will it eam 12-15 If Chine tides its 160.000 pounds of raw materials as you recommended in requirement 13. up to how much should it be willing to pay per pound for additional raw materials