O Required Information The Foundational 15 (Algo) (L011-2, 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 $125 and $85, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 101,000 units of each product. Its average cost per unit for each product at this level of activity are given below. Alpha teta 30 $ 12 Direct labor Variable manufacturing overhead 6 Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses 11 Total cost per unit 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. Direct materials 20 23 8 17 13 16 5 105 19 9 77 Foundational 11-3 (Algo) 3. Assume that Cane expects to produce and sell 81,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 11,000 additional Alphas for a price of $84 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? Chapter 11 Foundational 15 Seved Help 4 Part 4 of 15 Required Information The Foundational 15 (Algo) [LO11-2, L011-3, LO11-4, L011-5, LC11-6) [The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta thot sell for $125 and $85, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 101,000 units of each product. Its average cost per unit for each product at this level of activity are given below 0.83 points BOG Alphabet Direct materials Direct Labor $30 $ 12 21 20 Variable manufacturing overhead aceable fixed manufacturing overhead 17 19 Variable selling expenses 13 9 Common fixed expenses 16 11 Total cost per unit 105 77 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common food expenses are unavoidable and have been allocated to products based on sales dollars. P merces Foundational 11-4 (Algo) 4. Assume that Cane expects to produce and sell 91,000 Betas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 6,000 additional Botas for a price of $40 per unit. What is the financial advantage disadvantage) of accepting the new customer's order? Beta Cane Company manufactures two products called Alpha and Beta that sell for $125 and $85, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 101000 units of each product. Its average cost per unit for each product at this level of activity are given below. Alpha Direct materials $ 30 $ 12 Direct Labor 21 20 Variable manufacturing overhead Traceable fixed manufacturing overhead 17 19 Variable selling expenses Common faced expenses 16 11 Total cost per unit $105 $ 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. 8 6 13 9 Foundational 11-5 (Algo) 5. Assume that Cane expects to produce and sell 96,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 11,000 additional Alphos for a price of $84 per unit however pursuing this opportunity wil decrease Alpha sales to regular customers by 6,000 units. 3. 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. ROG SA Reg 58 What is the financial advantage (disadvantage of accepting the new customer's order
