Required information The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $210 and $172, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 128,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Direct waterials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alna 5.403 24 4 25 23 33 30 26 33 28 $199 $121 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 98,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 28,000 additional Alphas for a price of $152 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? Smed ! Required information The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $210 and $172, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 128,000 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 38 25 33 30 3 $199 Bet $ 24 34 23 36 26 28 $171 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 113,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 28,000 additional Alphas for a price of $152 per unit, however pursuing this opportunity will decrease Alpha sales to regular customers by 13.000 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. Required information The following information applies to the questions displayed below.) Cane Company manufactures two products called Alpha and Beta that sell for $210 and $172, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 128,000 units of each product. Its average cost per unit for each product at this level of activity are given below. Alpha $40 38 Flet $ 24 34 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Connon fixed expenses 25 33 30 33 23 36 26 28 Total cost per unit $199 $171 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 78,000 Betas and 98.000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 11.000 units. What is the financial advantage (disadvantage) of discontinuing the Beta product line? TVO Required information The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $210 and $172, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 128.000 units of each product. Its average cost per unit for each product at this level of activity are given below. Alp $40 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit 25 33 30 33 $190 5.24 34 23 36 26 28 $121 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 73,000 Alphas during the current year. A supplier has offered to manufacture and deliver 73,000 Alphas to Cane for a price of $152 per unit. What is the financial advantage (disadvantage) of buying 73.000 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 $210 and $172 respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 128.000 units of each product is average cost per unit for each product at this level of activity are given below. Direct waterials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $.40 24 38 34 25 23 33 36 10 26 28 $199 $171 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 98.000 units of Alpha and 78,000 units of Beta. Also assume that the raw material available for production is limited to 248.000 pounds. How many units of each product should Cane 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 $210 and $172, respectively. Each product uses only one type of raw material thot costs $8 per pound. The company has the capacity to annually produce 128,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha $40 38 Beta $.24 33 Direct materials Direct labor Variable manufacturing overhead Traceable Fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit 23 30 26 28 30 33 $199 $11 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoldable and have been allocated to products based on sales dollars. 14. Assume that Cane's customers would buy a maximum of 98,000 units of Alpha and 78.000 units of Beta. Also assume that the raw. material available for production is limited to 248.000 pounds. What is the total contribution margin Cane Company will earn? Total contribution margir