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Homow % M Inbox (EX 4 Quote Sell You X cato.mheducation.com/ext/map/index.html?_con- con& external_browser=Q&launchUrl=httpsX253A-X252FX262Fblackboard, ottawa-edu::252 Fultra>:252... Chapter 7 Case Study O 10 Required Information (The following
Homow % M Inbox (EX 4 Quote Sell You X cato.mheducation.com/ext/map/index.html?_con- con& external_browser=Q&launchUrl=httpsX253A-X252FX262Fblackboard, ottawa-edu::252 Fultra>:252... Chapter 7 Case Study O 10 Required Information (The following information applies to the questions displayed below) Part 10 of15 Cane Company manufactures two products called Alpha and Beta that sell for $130 and $90, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 102,000 units of each product. Its average cost per unit for each product at this level of activity are given below. Alpha Direct materials $ 25 $ 10 Direct labor 31 Variable manufacturing overhead 17 Traceable fixed manufacturing overhead 18 20 Variable selling expenses 14 Common Ilxed expenses 17 12 Total come por unit $ 113 $ 80 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 Came expects to produce and sell 52,000 Alphas during the current year. A supplier has offered to manufacture and deliver 52,000 Alphas to Cane for a price of $98 per unit. What is the financial advantage (disadvantage) of buying 52,000 units from the supplier instead of making those units
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