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help 10 Required information The Foundational 15 (Algo) [LO11-2, LO11-3, LO11-4, LO11-5, LO11-6] [The following information applies to the questions displayed below] Cane Company manufactures
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Required information The Foundational 15 (Algo) [LO11-2, LO11-3, LO11-4, LO11-5, LO11-6] [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beto that seli for $155 and $115, respectively, Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 110,000 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 ovethead to be avoldable, whereas its common floed expenses are unavoidable and have been allocated to products besed on sales dollars. Foundational 11-10 (Algo) 0. Assume that Cane expects to produce and sell 57,000 Alphas during the curtent yeor, A supplior has offered to manufacture and deliver 57,000 Aphas to Cane for a price of $108 per unit. What is the financial advantage (disadvantege) of buying 57,000 units from he supplier instead of making those units Step by Step Solution
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