Cane Company manufactures two products called Alpha and Beta that sell for $135 and $95, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 105,000 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, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Required: 1. What is the total amount of traceable fixed manufacturing overhead for each of the two products? Cane Company manufactures two products called Alpha and Beta that sell for $135 and $95, respectively Each product uses only one type of raw material that costs $6 per pound. The compony has the capacity to annually produce 105,000 units of each product Its average cost per unit for each product at this level of activity are given below The compory considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fored expenses are unavoidable and have been allocated to products based on sales dollars 2. What is the compary's total amourt of common fored expenses? Cane Company manufactures two products called Alpha and Beta that sell for $135 and $95, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 105,000 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. whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars Assume that Cane expects to produce and sell 83,000 Alphas during the current year One of Cane's sales representatives has und a new customer who is willing to buy 13.000 odditional Alphas for a price of $92 per unit. What is the financial odvantage lisadvantage) of accepting the new customer's order? Cane Company manufactures fwo products called Alpha and Beta that sell for $135 and $95, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 105,000 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, whereas its common fixed expenses are unavoidoble and have been allocated to products based on sales dollars. Assume that Cane expects to produce and sell 93.000 Betas during the current year. One of Cane's sales representatives has found new customer who is willing to buy 4,000 additional Betas for a price of $42 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 $135 and $95, respectively. Each product uses only one type of taw material that costs $6 per pound. The company has the capacity to annually produce 105,000 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, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Assume that Cane expects to produce and sell 98.000 Alphas during the current year. One of Cane's sales representatives has bund a new customer who is willing to buy 13,000 additional Alphas for a price of $92 per unit; however pursuing this opportunity will lecrease Apha sales to regular customers by 6,000 units. What is the financial advantage (disadvantage) of accepting the new customer's order? Based on your calculations above should the special order be accepted? Complete this question by entering your answers in the tabs below. 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 $135 and $95, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 105,000 units of each product lits average cost per unit for each product at this level of activity are given below: The compary 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 98,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is wiling to buy 13,000 additional Alphas for a price of $92 per unit; however pursuing this opportunity will decrease Alpha sales to regular customers by 6,000 units. a. What is the financial advantage (disadvantage) of accepting the new customer's order? b. Based on your calculations above should the special order be accepted? Complete this question by entering your answers in the tabs below. Based in yeur calculations in 5 a shoudt the special order ban accepted? Cane Compary manufactures two products called Alpha and Beta that sell for $135 and $95, respectively Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 105,000 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, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Assume that Cane normally produces and selis 93.000 Betas per year. What is the financial advantage (disadvantage) of Aiscontinuing the Beta product line? Cane Company manufactures two products called Alpha and Beta that sell for $135 and $95, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 105,000 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, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Assume that Cane normally produces and sells 43.000 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 $135 and $95, respectively Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 105,000 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, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars 3. Assume that Cane normally produces and sells 63,000 Betas and 83,000 Alphas per year. If Cane discontinues the Beta product ane, its saies representatives could increase sales of Alpha by 18,000 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 $135 and $95, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 105.000 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, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars Assume that Cane expects to produce and sell 83,000 Alphas during the current year. A supplier has offered to manufacture and deiver 83,000 Alphas to Cane for a price of $92 per unit. What is the financial advantage (disadvantage) of buying 83,000 units from the supplier instead of making those units? Cane Company manufactures two products called Apha and Beta that sell for $135 and $95, respectively. Each product uses only one type of raw mateial that costs $6 per pound. The company has the capacity to annually produce 105,000 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, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 0. Assume that Cane expects to produce and sell 53.000 Alphas during the current year. A supplier has offered to manufacture and Jeliver 53,000 Alphas to Cane for a price of $92 per unit. What is the financial advantage (disadvantage) of buying 53,000 units from the supplier instead of making those units? Cane Company manufactures two products called Alpha and Beta that sell for $135 and $95, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 105,000 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, whereas its common fixed expenses are 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 each of the two products? Cane Company manufactures two products called Alpha and Beta that sell for $135 and $95, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 105.000 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, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 2. What contribution margin per pound of raw materiat is earned by each of the two products? Note: Round your answers to 2 decimal places. Cane Company manufactures two products called Alpha and Beta that sell for $135 and $95, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 105,000 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, 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 83,000 units of Alpha and 63,000 units of Beta. Also assume that the raw material available for production is limited to 200,000 pounds. How many units of each product should Cane produce to maximize its profits? Cane Company manufactures two products called Alpha and Beta that sell for $135 and $95, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 105,000 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, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Assume that Cane's customers would buy a maximum of 83,000 units of Alpha and 63,000 units of Beta. Also assume that the rav aterial available for production is limited to 200,000 pounds. What is the total contribution margin Cane Company will eam? Cane Company manufactures two products called Alpha and Beta that sell for $135 and $95, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 105,000 units of each product. Its average cost per unit for each product at this level of activify are given below: The compary considers its taceable fixed manufacturing overhead to be avoidable, whereas its common fored expenses are unavoidable and have been allocated to products based on sales dollars 15. Assume that Cane's customers would buy a maximum of 83,000 units of Alpha and 63.000 units of Beta. Also assume that the company's raw material avaiable for production is limited to 200,000 pounds, If Cane uses its 200,000 pounds of raw materials, up to how much should it be willing to pay per pound for additional raw materials? Note: Round your answer to 2 decimal ploces