Required Information [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $150 and $110, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 108,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Direct labor Direct materials Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $ 30 Beta $15 26 22 13 11 22 24 18 14 21 16 5 130 $102 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. 2. What is the company's total amount of common fixed expenses? Total common fixed expenses a 2 uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 108.000 Beta that sell for $150 and $110, respectively. Each product 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 Connon fixed expenses Total cost per unit Alpha $ 30 Beta $15 26 22 13 11 22 24 18 14 21 16 $ 130 $102 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 86,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 16,000 additional Alphas for a price of $104 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? Required Information [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $150 and $110, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 108.000 units of each product. Its average cost per unit for each product at this level of activity are given below: Direct materials variable manufacturing overhead Direct labor Traceable fixed manufacturing overhead variable selling expenses Common fixed expenses Total cost per unit Alpha Beta $ 30 $15 26 22 13 11 22 24 18 14 21 16 $ 130 $102 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. 4. Assume that Cane expects to produce and sell 96,000 Betas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 2,000 additional Betas for a price of $45 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? 15 Required Information [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $150 and $110, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 108.000 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 Beta $15 26 22 13 11 22 24 18 24 21 16 $ 130 $ 102 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 101,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 16,000 additional Alphas for a price of $104 per unit: however pursuing this opportunity will decrease Alpha sales to regular customers by 9,000 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. Req 5A Req 58 What is the financial advantage (disadvantage) of accepting the new customer's order? Financial (disadvantage) Req 5B > Required Information [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $150 and $110, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 108,000 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 Alpha Beta $ 30 $15 26 22 13 11 22 24 18 14 21 16 $130 $ 102 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. Assume that Cane normally produces and sells 96,000 Betas per year. What is the financial advantage (disadvantage) of iscontinuing the Beta product line? Financial (disadvantage) Required Information [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $150 and $110, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 108,000 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 Alpha Beta $ 30 $15 26 22 13 11 22 24 18 14 21 16 $130 $ 102 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. Assume that Cane normally produces and sells 96,000 Betas per year. What is the financial advantage (disadvantage) of iscontinuing the Beta product line? Financial (disadvantage) Required Information i [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $150 and $110, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 108,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Direct labor Direct materials variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $ 30 Beta $15 26. 22 13 11 22 24 18 14 21 16 $130 $102 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 46,000 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 $150 and $110, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 108.000 units of each product. Its average cost per unit for each product at this level of activity are given below: Direct labor Direct materials variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Connon fixed expenses Total cost per unit Alpha Beta $ 30 $ 15 26 22 13 11 22 24 18. 14 21 16 $138 $ 102 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 66,000 Betas and 86.000 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? 19 of 15 Supped Required Information [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $150 and $110, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 108.000 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 Book Total cost per unit Alpha Beta $ 30 $ 15 26 22 13 11 22 24 18 14 21 16 $130 $102 Print eferences 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 86,000 Alphas during the current year. A supplier has offered to manufacture and deliver 86,000 Alphas to Cane for a price of $104 per unit. What is the financial advantage (disadvantage) of buying 86,000 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 $150 and $110, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 108,000 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 Beta $ 30 $15 26 22 13 11 22 24 18 14 21 16 5 130 $102 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 56,000 Alphas during the current year. A supplier has offered to manufacture and deliver 56,000 Alphas to Cane for a price of $104 per unit. What is the financial advantage (disadvantage) of buying 56,000 units from the supplier instead of making those units? Financial (disadvantage)