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I really need a help please. Thank you. I have posted twice. Required information The Foundational 15 (LO11-2, LO11-3, LO11-4, LO11-5, LO11-6) The following information
I really need a help please. Thank you.
I have posted twice.
Required information The Foundational 15 (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 Beta that sell for $120 and $80, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 100,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha $ 30 Beta $12 15 16 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit 12 15 $100 $68 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. Foundational 11-1 Required: 1. What is the total amount of traceable fixed manufacturing overhead for each of the two products? Alpha Beta Traceable fixed manufacturing overhead Total cost per unit 15 $100 The company considers its traceable fixed manufacturing overhead expenses are unavoidable and have been allocated to products ba Foundational 11-2 2. What is the company's total amount of common fixed expenses? Total common fixed expenses expenses are unavoidable and have been allocated to products based on sales dollars. Foundational 11-3 3. Assume that Cane expects to produce and sell 80,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 10,000 additional Alphas for a price of $80 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? Required information Complete this question by entering your answers in the tabs below. Req 5A Req 5B What is the financial advantage (disadvantage) of accepting the new customer's order? Reg SA Req 5B > Foundational 11-5 5. Assume that Cane expects to produce and sell 95,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 10,000 additional Alphas for a price of $80 per unit; however pursuing this opportunity wil decrease Alpha sales to regular customers by 5,000 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. Req 5A Reg 5B Based on your calculations in reg. 5a should the special order be accepted? Yes O No Step by Step Solution
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