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1 ! of 14 Required information Foundational (LO12-2, L012-3, L012-4, L012-5, LO12-6) (The following information applies to the questions displayed below.) Cane Company manufactures two products called Alpha and Beta that sell for $195 and $150, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 123,000 units of each product. Its unit costs for each product at this level of activity are given below: k Alpha $ 40 34 22 Beta $ 15 28 20 33 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses ces 30 27 30 23 25 Total cost per unit $183 $144 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars. Foundational 12-9 9. Assume that Cane expects to produce and sell 95,000 Alphas during the current year. A supplier has offered to manufacture and deliver 95,000 Alphas to Cane for a price of $140 per unit. If Cane buys 95,000 units from the supplier instead of making those units, how much will profits increase or decrease? Profit by You skipped this ! F 14 Required information Foundational (LO12-2, Loi2-3, L012-4, LO12-5, L012-6] [The following information applies to the questions displayed below.) Cane Company manufactures two products called Alpha and Beta that sell for $195 and $150, respectively. Each product uses only, one type of raw material that costs $5 per pound. The company has the capacity to annually produce 123,000 units of each product. Its unit costs for each product at this level of activity are given below: Alpha $ 40 34 22 Beta $ 15 28 20 33 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit es 30 27 23 25 30 $183 $144 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars. Foundational 12-10 10. Assume that Cane expects to produce and sell 70,000 Alphas during the current year. A supplier has offered to manufacture and deliver 70,000 Alphas to Cane for a price of $140 per unit. If Cane buys 70,000 units from the supplier instead of making those units, how much will profits increase or decrease? Profit by Required information Foundational (LO12-2, LO12-3, L012-4, L012-5, L012-6) [The following information applies to the questions displayed below.) Cane Company manufactures two products called Alpha and Beta that sell for $195 and $150, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 123,000 units of each product. Its unit costs for each product at this level of activity are given below: Alpha $ 40 34 22 Beta $ 15 28 20 S Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses 30 33 27 30 23 25 Total cost per unit $183 $144 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars. Foundational 12-11 11 How many pounds of raw material are needed to make one unit of Alpha and one unit of Beta? Alpha Beta Pounds of raw materials per unit
