Required information [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $205 and $164, respectively. Ea roduct uses only one type of raw material that costs $8 per pound. The company has the capacity to annually proc units of each product. Its average cost per unit for each product at this level of activity are given below: 27.000 Direct materials Variable manufacturing overhead Direct labor Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Alpha $40 Beta $24 37 30 24 22 32 35 29 25 32 27 $194 $163 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. 6. Assume that Cane normally produces and sells 107,000 Betas per year. 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 that sell for $205 and $164, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 127,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta Direct materials $40 $24 Direct labor 37 30 Variable manufacturing overhead 24 22 Traceable fixed manufacturing overhead 32 35 Variable selling expenses 29 25 Common fixed expenses 32 27 Total cost per unit $194 $163 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. 7. Assume that Cane normally produces and sells 57,000 Betas per year. 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 that sell for $205 and $164, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 127,000 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 Beta $24 37 30 24 22 32 35 29 25 32 27 $194 $163 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 77,000 Betas and 97,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 12,000 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 that sell for $205 and $164, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 127,000 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 Beta $ 24 37 30 24 22 32 35 29 25 32 27 $194 $163 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. 9. Assume that Cane expects to produce and sell 97,000 Alphas during the current year. A supplier has offered to manufacture and deliver 97,000 Alphas to Cane for a price of $148 per unit. What is the financial advantage (disadvantage) of buying 97,000 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 Alpha and Beta that sell for $205 and $164, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 127,000 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 Common fixed expenses Traceable fixed manufacturing overhead Variable selling expenses Total cost per unit! Alpha Beta $40 $24 37 30 24 22 32 35 29 25 32 27 $194 $163 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 72,000 Alphas during the current year. A supplier has offered to manufacture and deliver 72,000 Alphas to Cane for a price of $148 per unit. What is the financial advantage (disadvantage) of buying 72,000 units from the supplier instead of making those units