! Required information [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 average cost per unit for each product at this level of activity are given below. Direct materials Direct labor Variable sanufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Alpha $.40 34 22 38 22 30 Beta $ 15 28 20 33 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 unavoidable and have been allocated to products based on sales dollars. 3. Assume that Cane expects to produce and sell 95,000 Alphas during the current yed one of Cane's sales representatives has found a new customer who is willing to buy 25,000 additional Alphas for a price of $140 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? 5/6/2021 Seved O Required information 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 average cost per unit for each product at this level of activity are given below. Beta Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $40 34 22 30 27 38 $ 15 28 20 33 23 25 $180 5144 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 110,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 25.000 additional Alphas for a price of $140 per unit however pursuing this opportunity will decrease Alpha sales to regular customers by 12,000 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? Complete this question by entering your answers in the tabs below. Praw 19 20 21 23 124 Next > ! Required information 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 average cost per unit for each product at this level of activity are given below: Beta Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $40 36 22 30 22 10 $15 28 20 33 23 25 $183 $144 The company considers its traceable fixed manufacturing overhead to be avoldable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 8. Assume that Cane normally produces and sells 75,000 Betas and 95,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 15.000 units. What is the financial advantage (disadvantage) of discontinuing the Beta product line? ! Required information The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta thot 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 average cost per unit for each product at this level of activity are given below Direct baterials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $ 40 34 22 30 22 30 $183 Beta $15 28 20 33 23 25 $144 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. 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. What is the financial advantage (disadvantage) of buying 70,000 units from the supplier instead of making those units? ! Required information The following information applies to the questions displayed below) Cane Company manufactures two products called Alpho 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 average cost per unit for each product at this level of activity are given below: Alpha $.40 34 Direct materials Direct labor Variable manufacturint overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit 22 30 22 30 teta $15 28 20 33 23 25 $144 $183 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. 13. Assume that Cane's customers would buy a maximum of 95,000 units of Alpha and 75,000 units of Beta. Also assume that the raw material available for production is limited to 245,000 pounds. How many units of each product should Cane produce to maximize its profits? Alpha Beta Units produced blov ! Required information [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 average cost per unit for each product at this level of activity are given below. Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $40 34 22 90 27 30 Beta $ 15 28 20 33 23 25 $183 $140 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. 14. Assume that Cane's customers would buy a maximum of 95.000 units of Alpha and 75,000 units of Beta. Also assume that the raw material available for production is limited to 245,000 pounds. What is the total contribution margin Cane Company will earn? Total contribution margin