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 cost $8 per pound. the company has the capacity to annually produce 113,000 units of each product. its average cost per unit for each product at this level of activity are given below. the company considers its traceable fixed manufacturing overhead to be avoidable, where areas its common fixed expenses are unavoidable and have been allocated to Products based on sales dollars. What is the companies total amount of common fixed expenses?

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 average cost per unit for each product at this level of activity are given below: Alpha Beta $ 40 $ 24 25 14 Traceable fixed manufacturing overhead 2527 17 2419 $154 $126 Direct materials Direct labor Variable manufacturing overhead 29 15 Variable selling expenses Common fixed expenses Total cost per unit 21 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are 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 $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 average cost per unit for each product at this level of activity are given below Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha Beta $40 24 25 14 27 17 19 29 25 21 24 $154 $126 The company considers its traceable fixed manufacturing overhead to be avoidable. whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 3. 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 who is willing to buy 19.000 additional Alphas for a price of $116 per unit. What is the financial advantage (disadvantage) of accepting the new customer's orderf? 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 average cost per unit for each product at this level of activity are given below Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead 25 Variable selling expenses Common fixed expenses Total cost per unit Alpha Beta $40 $ 24 25 14 27 17 2419 $154$126 29 15 21 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars 4. 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 who is willing to buy 2.000 additional Betas for a price of $48 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? 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 average cost per unit for each product at this level of activity are given below Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha Beta S 40 24 25 14 27 17 19 $154 $126 29 15 25 21 24 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 5. Assume that Cane expects to produce and sell 104,000 Alphas during the current year. One of Cane's sales representatlives has found a new customer who is willing to buy 19,000 additional Alphas for a price of $116 per unit, however pursuing this opportunity will decrease Alpha sales to regular customers by 10,000 units. a. What is the financial advantage (disadvantage) of accepting the new customer's order? 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 average cost per unit for each product at this level of activity are given below Alpha Beta 4 $ 24 25 14 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead25 Variable selling expenses Common fixed expenses Total cost per unit 29 15 27 17 21 2419 $154 $126 The company considers its traceable fixed manufacturing overhead to be avoldable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 6. Assume that Cane normally produces and sells 99,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line? 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 average cost per unit for each product at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha Beta 40 24 25 14 27 17 24 19 $154$126 29 15 25 21 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 8. Assume that Cane normally produces and sells 69,000 Betas and 89,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 13,000 units. What is the financial advantage (disadvantage) of discontinuing the Beta product line? 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 average cost per unit for each product at this level of activity are given below Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha Beta $ 40 $ 24 25 14 27 17 19 $154 $126 29 15 25 21 24 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on salesd 9. Assume that Cane expects to produce and sell 89.000 Alphas during the current year. A supplier has offered to manufacture and deliver 89,000 Alphas to Cane for a price of S116 per unit. What is the financial advantage (disadvantage) of buying 89,000 units from the supplier instead of making those units? 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 average cost per unit for each product at this level of activity are given below Alpha Beta s 48 24 25 14 27 17 19 $154 $126 Direct materials Direct labor Variable manufacturing overhead 29 15 Traceable fixed manufacturing overhead 25 21 24 Variable selling expenses Common fixed expenses Total cost per unit The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 10. Assume that Cane expects to produce and sell 59,000 Alphas during the current year. A supplier has offered to manufacture and deliver 59,000 Alphas to Cane for a price of $116 per unit. What is the financial advantage (disadvantage) of buying 59.000 units from the supplier instead of making those units? 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 average cost per unit for each product at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha Beta s40 $ 24 25 14 27 17 29 15 25 21 24 19 $154 $126 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoldable and have been allocated to products based on sales dollars. 11. How many pounds of raw material are needed to make one unit of each of the two products? AlphaBeta Pounds of raw materials per und 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 average cost per unit for each product at this level of activity are given below Alpha Beta $ 40$ 24 25 14 27 17 19 $154 $126 Direct materials Direct labor Variable manufacturing overhead 29 15 Traceable fixed manufacturing overhead25 21 24 Variable selling expense:s Common fixed expenses Total cost per unit The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars 12. What contribution margin per pound of raw material is earned by each of the two products? (Round your answers to 2 decimal places.) Alpha Beta Contribution margin per pound 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 average cost per unit for each product at this level of activity are given below Alpha Beta $ 40 $ 24 25 14 27 17 19 $154 $126 Direct materials Direct labor Variable manufacturing overhead 29 15 Traceable fixed manufacturing overhead25 21 24 Variable selling expenses Common fixed expenses Total cost per unit The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 13. 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 raw material available for production is limited to 220,000 pounds. How many units of each product should Cane produce to maximize its profits? Alpha Beta Units produced 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 average cost per unit for each product at this level of activity are given below Direct materials Direct labor Variable manufacturing overhead Alpha Beta 40 $ 24 25 14 27 17 29 15 Traceable fixed manufacturing overhead 25 21 Variable selling expenses Common fixed expenses Total cost per unit 24 L19 $154 $126 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars 14. 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 raw material available for production is limited to 220,000 pounds. What total contribution margin will it earn? Tolal contribution maigin 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 average cost per unit for each product at this level of activity are given below Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha Beta $ 40 S 24 25 14 27 17 19 $154 $126 29 15 25 21 24 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoldable and have been allocated to products based on sales dollars 15. 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 raw material available for production is limited to 220.000 pounds. If Cane uses its 220,000 pounds of raw materials, up to how much should it be willing to pay per pound for additional raw materials? (Round your answer to 2 decimal places.) um price to bo paid per pound