Required information The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $185 and $120, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 112.000 units of each product its average cost per unit for each product at this level of activity are given below Alpha Direct materials birect labor Variable manufacturing overhead Traceable fixed Manufacturing overhead Variable selling expenses Connon xed expenses Total cost per unit 530 22 20 24 20 23 5130 $ 10 29 13 26 16 18 5112 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 98,000 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 $185 and $120, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 112.000 units of each product. Its average cost per unit for each product at this level of activity are given below Alpha Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit 5 30 22 20 24 20 23 $139 Beta $ 10 29 13 26 16 18 $112 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 48,000 Betas per year What is the financial advantage (disadvantage) of discontinuing the Beta product line? 1 15 Required information The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $185 and $120, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 112.000 units of each product. Its average cost per unit for each product at this level of activity are given below Beta $ 10 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha 5 30 22 20 24 20 23 $139 13 26 16 18 $112 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 68.000 Betas and 88,000 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? 5 Required information The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $185 and $120, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 112,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Beta 5 10 Direct materials Direct labor Variable manufacturing overhead Traceable bed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha 5 30 22 20 24 20 23 $139 13 26 16 11 $112 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 88.000 Alphas during the current year. A supplier has offered to manufacture and deliver 88.000 Alphas to Cane for a price of $112 per unit What is the financial advantage (disadvantage) of buying 88,000 units from the supplier instead of making those units