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If you could solve 4,5 and 6 that would be great! GAS SAPR Vand Search Daniel Colin AWESO I lome Irser Draw Design Layout Relererxes

If you could solve 4,5 and 6 that would be great!

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GAS SAPR Vand Search Daniel Colin AWESO I lome Irser Draw Design Layout Relererxes Mailings Reven View Hep Share Comments X Cut U Fire Realsco Select Paste Subule Sensitivity mat Painter L Faltar FAISA -iles Eclto Rusa Flies CIF Font rrah Editna Sensatt irrc: New Roman 2 AA A A Aabbccd Aabccbd AaBbc Aabbacul AaB :Hace ABC ABC- BIU XX A-P- 092 Roural "Nuss. Heading 1 Heating 2 Tide Suste C. Crisis Styles Cane Company manufactures two products called Alpha and Beta that sell for $115 and $75, respectively. The company has the capacity lo annually produce 100,000 units of each product. Its unit costs for each product at this level of activity (i.e., 100.000 units) are given below: Alpha Beta S 25 $ 17 7 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common lixed expenses Total cost per unit 15 10 12 S 17 7 10 61 11 14 89 $ $ Answer cach question independently unless instructed otherwise. Hint: Before answering the questions, compule the contribution murgin per unit, inal traceable fixed manufacturing overhead and liat common fired expenses for each prochuca. Alpha $115 $60 (25+17-7+11) $55 (115-60) Bcta $75 $34 $41 (75-34) Sales Price Per Unit: Variable Expenses Per Unit: Contribution Margin per Unit: Total Traccable Fixed MOH: Total Common Fixed Fynences 1,500,000 (15*100,000) 1,400,000 (14*100.000) 1.700,000 (17*100,000) 1,000,000 (10*100,000) Para 15 . + 1 HITS Type here to search OH DE 79"- Mostly cloudy AE. A (?) 19:13 PM 0/13/2021 B GAS SAPR Vand Search Daniel Colin AWESO I lome Irser Draw , Design Layout Relererxes Mailings Reven View Hep Share Comments X Cut irrc: New Roman 2 AA A A :- i- U Aabbccd Aabccbd AaBbc Aabbacul AaB :Hace ABC ABC- Roma "Nuse. Herding 1 Heaving 2 Suteille Salle C. Cris Fire Realsce Select Paste BIU XX AD EE Tiue mat Painter On9 Sensitivity L Faltar FAISA -iles Eclto Rusa Flies CIF Font IN Sarah Stics Editna Sensatt Total Traccable Fixed MOH: Total Common Fixed Expenses: 1,500,000 (15*100,000) 1,400,000 (14:100.000) 1.700,000 (17*100,000) 1.000.000 (10*100,000) 1. (2.5 points) Assume that Cane expects to produce and sell 85,000 Alphas during the current year. One of Canc's sales representatives has found a new customer that is willing to buy 9,500 additional Alphas for a price of 575 per unit. If Cane accepts the customer's offer, how much will its profils increase or decreasc? Show calculations, Particulars Revenuc (9500*75) Amount 712500 Relevant Cost: Direct Matcrial (25 9500); Direct Labor (17#9500): Variable MOH (7*9500): Variable Selling Expenses (119500) Profit (ss : 237500 161500 ,500 104.500 142500 Para 15 . DE + 1 HITS Type here to search OH 19- Mostly cloudy . 19:13 PM 0/13/2021 B GAS SAPR Vand - Search Daniel Colin AWESO I lome Irser Draw , Design Layout Relererxes Mailings Reven View Hei Share Comments X Cut U irrc: New Roman 2 AA A A BIU.*** AP Sabbc.cod Albeeld AaBbc Aabboul AaB CD ABC ABCO oral "Nosor. Hesdiny 1 eguirg 2 Subtle Suste C. Crisis Ernplass Fire Realsce Select Paste EE Tiue 02 mat Painter Sensitivity L Faltar FAISA -iles Eclto Rusa Flies CIF Font IN Parkrah Stics Eding Sensatt (7125CH)-237500-161500-66500-104500) 2. (2.5 points) Assume that Canc expects to produce and sell 96,000 Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 10,000 additional Alphas for a pries of S75 per unit. Il Canc acccpts the customer's offer, il will decrcasc Alpha sales to regular customers by 6,000 units. Should Canc acccpt this special order? Show calculations. 10000*75 750,000 6000 75 6000817 600087 600011 150000 102000 42000 66000 Incremental Revenue A: Incremental Variable Cost Direct Material: Direct Labor: Variable MOH: : Variable Selling Expense: Total Incremental Variable Cost 13: Forgone Sales to regular customer C: Incremental Net Operating Income: Cane should not accept it. 360000 (150000 102000142000 66000) 1,150,000 10000*115 A-B-C -760000 3. (2.5 points) Assume that Cane normally produces and sells 92,000 Betas per year. The Traceable livre manufacturinu iwerhead could be savrul il rither product is discontinul hul PAR! . DE + 1 HITS Type here to search Of 19- Mostly cloudy . 19:13 PM 0/13/2021 B GAS SAPR Vand - Search Daniel Colin AWESO I lome Irser Draw Design Layout Relererxes Mailings Reven View Hep Share Comments X Cut U irrc: New Roman 2 AA A A 2 BIU.*** AP === Aabbccd Aabccbd AaBbc Aabbacul AaB :Hace ABC ABC- " Roral "Nu se. Heading 1 Heating 2 Suste C. Crisis Fire Realsco Select Paste Title Subule SO mat Painter Sensitivity L Faltar FAISA -iles Eclto Rusa Flies CIF Font Parrah St. Editna Sensatt 3. (2.5 points) Assunc that Canc nomially produces and sells 92,000 Bctas per year. The traceable fixed manufacturing overhead could be saved if either product is discontinued, but the common lixed expenses could not be saved. If Canc disconlinucs the Bela product linc, how much will profits increase or decrease? Show calculations. Bets Revenue (9200075) Traceable Fixed MOH: Common Fixed Expenses: Profit (Loss); (6,900,000) 1.700.000 (1.000.000) (6,200,000) (-6,900,000 1,700,000-1,000,000) 2 4. 2.5 points) Assume that Canc normally produces and sells 61,000 Bctas and 85,000 Alphas per year. The traceable fixed manufacturing overhead could be saved if either product is discontinued. but the commun lixol expenses would not be saved. Il Cane disconlinues the Bela product linc, ils sales representatives could increase sales of Alpha by 15,000 units. II Cane discontinues the Beta product line, how much would profits increase or decrease!! Show calculations. PAR! . DE + 1 HITS Type here to search O $ +) 19- Mostly cloudy . 19:13 PM 0/13/2021 B GAS SAPR Vand - Search Daniel Colin AWESO I lome Irser Draw , Design Layout Relererxes Mailings Reven View Hep Share Comments X Cut EU U irrc: New Roman 2 AA A A 2 i- BU XX AD EEE Sabbc.cod Albeeld AaBbc Aabboul AaB CD ABC ABCO Norral "No Spec. Heading 1 Heaving 2 Tille Subule Sole C. Class Cupluss Fire Realsce Select Paste 09 Sensitivity mat Painter L Faltar FAISA -iles Eclto Rusa Flies CIF Font Parkrah Sty: Editna Sensatt 4. (2.5 points) Assume that Cane normally produces and sells 61,000 Betas and 85.000 Alphas per year. The traceable fixed manufacturing overhead coukl be saved if either product is discontinued, but the cominon fixed expenses could not be saved. If Canc discontinues the Beta product line, its sales representatives could increase sales of Alpha by 15,000 units. If Cane discontinues the Beta product line, how much would protits increase or decrease? Show calculations. S. (3.5 pomis) Assume that Cane expects to produce and sell 85.000 Alphas during the current year. A supplier has offered to manufacture and deliver 85,000 Alphas to Canc lor a price of $75 per unit. Traceable fixed costs could be saved if Cane no longer produces Alphas, but common fixed costs could not be saved. Cane incurs variable selling costs regardless of its duision lo maku vr buy Alphas. Show calculations to answer the following questions: a. If Cane buys 85,000 units from the supplier instead of making those units, what is the total dollar advantage (disadvantage) of purchasing the units rather than making them? b. What is the maximum pricu per unit Cane should be willing to pay the supplier? 6. (3.5 pomis) Assume that Cane expects to produce and sell 55.000 Alphas during the current year. A supplier has offered to manufacture and deliver 55,000 Alphas to Canc for a price of $75 per unit. Traceable fixed costs could be saved if Cane no longer produces Alphas, but common fixed costs could not be saved. Cane incurs variable selling costs regardless of its decision to make or buy Alphas. Show calculations to answer the following questions: a. If Cane buys 55,000 units from the supplier instead of making those units, what is the lotal dollar advanlage (disadvantage) of purchasing the units rather than making them? b. What is the maximum price per unit Cane should be willing to pay the supplier? PAR! . DE + 1 HITS Type here to search OH 19"- Mostly cloudy . 19:13 PM 0/13/2021 B

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