Cane Compary manulachures fwo products called Apha and Aeta that sell for $195 and $150, respectively Each product ines orify one type of raw material that costs $5 per pound. The company has the capacity to annually produce 123000 units of each produc! Hs unif costs for each product at this level of activity are given below: The company considers its traceable fixed manufacturing overhead to be avoldable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars. Required: Assume that Cane nomrally produces and sells 75.000 Betas and 95.000 Alphas per year if Cane discontinues the Beta product inet: its sales reptesentatives could increase sales of Alpha by 15,000 units. If Cane discontinues the Beta product line, how much would profits increase or decrease? (Input the amount os positive volue.) Cane Company manufactures two products called Alpha and Beta that sell for $195 and $150, respectively. Each product uses aniy 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: The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoldable and have been allocated to products based on sales dollars. Required: Assume that Cane normally produces and sells 55,000 Betas per year. If Cane discontinues the Beta product line, how moch wal profits increase or decrease? (input the omount as positive value.) Cane Company manulactures two products called Alpha and Beta that sell for $155 and $115, respectively Each protuet ises anly ane type of raw material that costs $6 per pound. The company has the capacity to annually produce 110,000 unifs af each product. its unit. costs for each product at this level of activity are given below: The company considers its traceable fixed manufacturing overhead to be avoldable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars: Required: Assume that Cane expects to produce and sell 102,000 Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 17,000 additional Alphas for a price of $108 per unit. If Cane accepts the customer's offer it will decrease Alpha sales to regular customers by 9,000 units. What is the amount of incremental net operating income if the order is accepted? (inpur the amount os positive volue.) Cane Company manufactures two products called Alpha and Beta that vell for $180 and $145, tespectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually prodice 118.000 units of each product its unit costs 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 ate deemed unavoidabie and have besen allocated to products based on sales dollars. Required: Assume that Cane expects to produce and sell 92,000 Aphas during the current year. A supplier has offered to manufacture and deliver 92.000 Aphas to Cane for a price of \$128 per unit. If Cane buys 92.000 units from the suppller instead of making those units how much will profits increase or decrease? (Input the antount as positive value.)
