O Required information The following information applies to the questions displayed below.) Cane Company manufactures two products called Alpha and Beta that sell for $240 and $162, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 131,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta Direct materials $ 35 515 Direct Labor 48 23 Variable manufacturing overhead 27 25 Traceable fixed manufacturing overhead 35 38 Variable selling expenses 32 28 Connon Fixed expenses 35 30 Total cost per unit $ 212 5 159 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. 3. Assume that Cane expects to produce and sell 100,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 30.000 additional Alphas for a price of $160 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? Required information The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $240 and $162, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 131,000 units of each product is average cost per unit for each product at this level of activity are given below Ath Beta Direct materials $ 35 $15 Direct Labor 48 23 Variable facturing overhead Tracente reactie overhead 35 We selling expenses Contents Total cost perit $ 212 3 159 The company consider its traceable fred manufacturing overhead to be avoidable, whereas its common fixed expenses are unable and have been allocated to products based on sales dollars 22 32 35 25 30 20 30 Assume that one expects to produce and sell 110,000 Betas during the current year One of Cone's sales representatives has found a new customer who is willing to buy 2,000 additional Betos for a price of $83 per unit. What is the financial advantage disadvantage of accepting the new customer's order? O Required information (The following information applies to the questions displayed below! Cane Company manufactures two products called Alpha and Beta that sell for $240 and $162, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 131000 units of each product. Its average cost per unit for each product at this level of activity are given below." Alghis Beta Direct materials $ 35 $ 15 Direct labor 48 23 Variable facturing overhead 22 25 Traceleted sucturing overhead 35 38 Variable setting expenses 32 28 Common Pied expenses 35 30 Total cost pert 212 5 159 The company considers its traceable feed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 7. Assume that Cane normally produces and sells 60,000 Betas per year. What is the financial advantage (disadvantage of discontinuing the Beta product line
