Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I tried the answers 790,000 as well as (790,000) which are also incorrect. I need help finding the right answer cause 910,000 is incorrect. Cane

I tried the answers "790,000" as well as "(790,000) which are also incorrect. I need help finding the right answer cause "910,000" is incorrect. image text in transcribed
image text in transcribed
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: 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. 5. Assume that Cane expects to produce and sell 97,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 12,000 additional Alphas for a price of $88 per unit; however pursuing this opportunity w decrease Alpha sales to regular customers by 7,000 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? ( Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. are unavoidable and have been allocated to pi ducts based on sales dollars. 5. Assume that Cane expects to produce and sell 97,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 12,000 additional Alphas for a price of $88 per unit; however pursuing this opportunity will decrease Alpha sales to regular customers by 7,000 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? Q Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. What is the financial advantage (disadvantage) of accepting the new customer's order

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting

Authors: M.E. Thukaram Rao

3rd Edition

8122433820, 978-8122433821

More Books

Students also viewed these Accounting questions