Cane Company manufactures two products called Alpha and Beta that sell for $140 and $100, respectively Each product uses only one type of raw material that costs $8 per pound The company has the capacity to annually produce 106,000 units of each product Its unit costs for each product at this level of activity are given below Alpha Beta Direct materials $ 32 $ 16 Direct labor 24 19 Variable manufacturing overhead 10 9 Traceable fixed manufacturing overhead 20 22 Variable selling expenses 16 12 Common fixed expenses 19 14 Total cost per unit $ 121 $ 92 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 11 How many pounds of raw material are needed to make one unit of Alpha and one unit of Beta References eBook Resources Worksheet Learning Objective 12 03 Prepare a make or buy analysis Learning Objective 12 06 Determine the value of obtaining more of the constrained resource Difficulty 2 Medium Learning Objective 12 04 Prepare an analysis showing whether a special order should be accepted Learning Objective 12 02 Prepare an analysis showing whether a product line or other business segment should be added or dropped Learning Objective 12 05 Determine the most profitable use of a constrained resource Check my work 12 value 1 00 points Required information 12 What contribution margin per pound of raw material is earned by Alpha and Beta (Round your answers to 2 decimal places ) References eBook Resources Worksheet Learning Objective 12 03 Prepare a make or buy analysis Learning Objective 12 06 Determine the value of obtaining more of the constrained resource Difficulty 2 Medium Learning Objective 12 04 Prepare an analysis showing whether a special order should be accepted Learning Objective 12 02 Prepare an analysis showing whether a product line or other business segment should be added or dropped Learning Objective 12 05 Determine the most profitable use of a constrained resource Check my work 13 value 1 00 points Required information 13 Assume that Canes customers would buy a maximum of 84,000 units of Alpha and 64,000 units of Beta Also assume that the companys raw material available for production is limited to 166,000 pounds How many units of each product should Cane produce to maximize its profits References eBook Resources Worksheet Learning Objective 12 03 Prepare a make or buy analysis Learning Objective 12 06 Determine the value of obtaining more of the constrained resource Difficulty 2 Medium Learning Objective 12 04 Prepare an analysis showing whether a special order should be accepted Learning Objective 12 02 Prepare an analysis showing whether a product line or other business segment should be added or dropped Learning Objective 12 05 Determine the most profitable use of a constrained resource Check my work 14 value 1 00 points Required information 14 Assume that Canes customers would buy a maximum of 84,000 units of Alpha and 64,000 units of Beta Also assume that the companys raw material available for production is limited to 166,000 pounds What is the maximum contribution margin Cane Company can earn given the limited quantity of raw materials References eBook Resources Worksheet Learning Objective 12 03 Prepare a make or buy analysis Learning Objective 12 06 Determine the value of obtaining more of the constrained resource Difficulty 2 Medium Learning Objective 12 04 Prepare an analysis showing whether a special order should be accepted Learning Objective 12 02 Prepare an analysis showing whether a product line or other business segment should be added or dropped Learning Objective 12 05 Determine the most profitable use of a constrained resource Check my work 15 value 1 00 points Required information 15 Assume that Canes customers would buy a maximum of 84,000 units of Alpha and 64,000 units of Beta Also assume that the companys raw material available for production is limited to 166,000 pounds Up to how much should it be willing to pay per pound for additional raw materials (Round your answer to 2 decimal places )

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Cane Company manufactures two products called Alpha and Beta that sell for $140 and $100, respectively. Each product uses only one type of raw material

Cane Company manufactures two products called Alpha and Beta that sell for $140 and $100, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 106,000 units of each product. Its unit costs for each product at this level of activity are given below:

	Alpha			Beta
Direct materials		$	32		$	16
Direct labor			24			19
Variable manufacturing overhead			10			9
Traceable fixed manufacturing overhead			20			22
Variable selling expenses			16			12
Common fixed expenses			19			14

Total cost per unit		$	121		$	92

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.

11.

How many pounds of raw material are needed to make one unit of Alpha and one unit of Beta?

References

eBook & Resources

WorksheetLearning Objective: 12-03 Prepare a make or buy analysis.Learning Objective: 12-06 Determine the value of obtaining more of the constrained resource.

Difficulty: 2 MediumLearning Objective: 12-04 Prepare an analysis showing whether a special order should be accepted.

Learning Objective: 12-02 Prepare an analysis showing whether a product line or other business segment should be added or dropped.Learning Objective: 12-05 Determine the most profitable use of a constrained resource.

Check my work

12.

value: 1.00 points

Required information

12.	What contribution margin per pound of raw material is earned by Alpha and Beta? (Round your answers to 2 decimal places.)

References

eBook & Resources

WorksheetLearning Objective: 12-03 Prepare a make or buy analysis.Learning Objective: 12-06 Determine the value of obtaining more of the constrained resource.

Difficulty: 2 MediumLearning Objective: 12-04 Prepare an analysis showing whether a special order should be accepted.

Check my work

13.

value: 1.00 points

Required information

13.	Assume that Canes customers would buy a maximum of 84,000 units of Alpha and 64,000 units of Beta. Also assume that the companys raw material available for production is limited to 166,000 pounds. How many units of each product should Cane produce to maximize its profits?

References

eBook & Resources

WorksheetLearning Objective: 12-03 Prepare a make or buy analysis.Learning Objective: 12-06 Determine the value of obtaining more of the constrained resource.

Difficulty: 2 MediumLearning Objective: 12-04 Prepare an analysis showing whether a special order should be accepted.

Check my work

14.

value: 1.00 points

Required information

14.

Assume that Canes customers would buy a maximum of 84,000 units of Alpha and 64,000 units of Beta. Also assume that the companys raw material available for production is limited to 166,000 pounds. What is the maximum contribution margin Cane Company can earn given the limited quantity of raw materials?

References

eBook & Resources

WorksheetLearning Objective: 12-03 Prepare a make or buy analysis.Learning Objective: 12-06 Determine the value of obtaining more of the constrained resource.

Difficulty: 2 MediumLearning Objective: 12-04 Prepare an analysis showing whether a special order should be accepted.

Check my work

15.

value: 1.00 points

Required information

15.

Assume that Canes customers would buy a maximum of 84,000 units of Alpha and 64,000 units of Beta. Also assume that the companys raw material available for production is limited to 166,000 pounds. Up to how much should it be willing to pay per pound for additional raw materials? (Round your answer to 2 decimal places.)