! Required information (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 101000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha $ 30 21 Bota $12 20 6 19 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit 9 17 13 16 $105 11 $77 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 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? Help Save & EX Required information 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 101000 units of each product. Its average cost per unit for each product at this level of activity are given below. $ 30 21 but 31 20 Direct materials Direct labor Variable manufacturing overhead Traceably d manufacturint wheat Variable selling expenses fied expenses Total cost per unit 5 19 16 11 $105 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas is common fixed expenses ote unavoidable and have been allocated to products based on sales dollars 5. Assume that can 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 Alphas for a price of $84 per unit, however pursuing this opportunity will decrease Alpha sales to regular customers by 6,000 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. Activate Wind Game 15/6/2021 Seved Required information [The following information applies to the questions displayed below.) Cane Company manufactures two products called Alpha and Beta that sell for $125 and 585, 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 $ 30 21 8 17 13 16 Beta $12 20 6 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit 19 9 11 $105 $77 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. Assume that Cane normally produces and sells 61000 Betas and 81.000 Alphas per year. If Cane discontinues the Beta product line: its sales representatives could increase sales of Alpha by 16,000 units. What is the financial advantage (disadvantage) of discontinuing the Beta product line? - 15/6/2021 ! Required information [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: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $ 30 21 8 17 13 Beta $12 20 6 19 9 16 11 $105 $77 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 51,000 Alphas during the current year. A supplier has offered to manufacture and deliver 51,000 Alphas to Cane for a price of $84 per unit. What is the financial advantage (disadvantage) of buying 51000 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 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. Direct materiais Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alphia 530 21 8 17 13 16 Bota $12 20 6 19 9 S105 57 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 81.000 units of Alpha and 61,000 units of Beto. Also assume that the raw material available for production is limited to 161.000 pounds. How many units of each product should Cone produce to maximize its profits? Alpha Beta Units produced Required information 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 101000 units of each product. Its average cost per unit for each product at this level of activity are given below Alpha $ 30 21 8 17 Direct materials Direct Tabor Variable manufacturing overhead Traceable Fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Beta $12 20 6 19 9 11 13 16 $105 572 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 14. Assume that Cane's customers would buy a maximum of 81000 units of Alpha and 61,000 units of Beta. Also assume that the raw material available for production is limited to 161.000 pounds. What is the total contribution margin Cane Company will earn? Total Constitution margin
