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Required Information The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $135 and

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Required Information The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $135 and $95, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 105.000 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 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 98,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 13,000 additional Alphas for a price of $92 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. Reg SA Reg se What is the financial advantage (disadvantage of accepting the new customer's order? Req 5B > 6. Assume that Cane normally produces and selis 93,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line? 7. Assume that Cane normally produces and sells 43,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line? 8. Assume that Cane normally produces and sells 63.000 Betas and 83.000 Alphas per year. If Cane discontinues the Beta product line. Its sales representatives could increase sales of Alpha by 18,000 units. What is the financial advantage (disadvantages of discontinuing the Beta product line? 9. Assume that Cane expects to produce and sell 83,000 Alphas during the current year. A supplier has offered to manufacture and dellver 83,000 Alphas to Cane for a price of $92 per unit. What is the financial advantage (disadvantage) of buying 83,000 units from the supplier instead of making those units? 10. Assume that Cane expects to produce and sell 53.000 Alphas during the current year. A supplier has offered to manufacture and dellver 53,000 Alphas to Cane for a price of $92 per unit. What is the financial advantage (disadvantages of buying 53,000 units from the supplier instead of making those units? 11. How many pounds of raw material are needed to make one unit of each of the two products Alpha Beta Pons et raw materias per una Pounds of raw materials per unit com 12. What contribution margin per pound of raw material is earned by each of the two products? (Round your answers to 2 decimal places.) Alpha Beta Contribution margin per pound 13. Assume that Cane's customers would buy a maximum of 83.000 units of Alpha and 63,000 units of Beta. Also assume that the raw material available for production is limited to 200.000 pounds. How many units of each product should Cane produce to maximize its profits? Alpha Beta Units produced 14. Assume that Cane's customers would buy a maximum of 83.000 units of Alpha and 63.000 units of Beta. Also assume that the raw material avaliable for production is limited to 200,000 pounds. What total contribution margin will it earn? 15. Assume that Cane's customers would buy a maximum of 83.000 units of Alpha and 63,000 units of Beta. Also assume that the raw material available for production is limited to 200.000 pounds. If Cane uses its 200.000 pounds of raw materials, up to how much should it be willing to pay per pound for additional raw materials? (Round your answer to 2 decimal places.) Maximum price to be paid per pound

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