Required information [The following information opplies to the questions disployed below.] Cane Company manufactures two products called Alpha and Bete that sell for $190 and $155. respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capocity to annually produce 122.000 units of each product. Its average cost per unit for each product at this level of activity are given below. 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. diveremang fies Bes brot were? dacperingtite "en Jind urtine" sibutal gathe 15. Assume that Cane's customers would buy a maximum of 94,000 units of Alpha and 74,000 units of Beta. Also assume that the company's raw moterial avallable for production is limited to 228.000 pounds. If Cane uses its 228,000 pounds of raw materials, up how much should it be willing to pay per pound for additional raw materials? (Round your answer to 2 decimal places.) Required information [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $190 and $155, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 122.000 units of each product. Its average cost per unit for each product at this level of activity are given below: 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. Complete this question by entering your answers in the tabs below. What is the financial advantage (disadvantage) of accepting the new customer's order? Complete this question by entering your answers in the tabs below. Based on your calculations in 5 a should the special order be accepted? 6. Assume that Cane normally produces and sells 104,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beto product line? 7. Assume that Cane normally produces and sells 54,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line? 8. Assume that Cane normally produces and sells 74,000 Betas and 94,000 Alphas per year. If Cane discontinues the Beto product line, its sales representatives could increase sales of Alpha by 14,000 units. What is the financial advantage (disadvantage) of discontinuing the Beta product line? 9. Assume that Cane expects to produce and sell 94,000 Alphas during the current year. A supplier has offered to manufacture and deliver 94,000 Alphas to Cane for a price of $136 per unit. What is the financial advantage (disadvantage) of buying 94,000 units from the supplier instead of making those units? 10. Assume that Cane expects to produce and sell 69,000 Alphas during the current year. A supplier has offered to manufacture and deliver 69,000 Alphas to Cane for a price of $136 per unit. What is the financial advantage (disadvantage) of buying 69,000 units from the supplier insteod of making those units? 11. How many pounds of raw material are needed to make one unit of each of the two products? 12. What contribution margin per pound of raw material is earned by each of the two products? (Round your answers to 2 decimel pleces.) 3. Assume that Cane's customers would buy a maximum of 94,000 units of Alpha and 74,000 units of Beta. Also assume that the raw material avoilable for production is limited to 228,000 pounds. How many units of each product should Cane produce to maximize its grofits? 14. Assume that Cane's customers would buy a maximum of 94,000 units of Alpha and 74,000 units of Beta. Also assume that the raw material available for production is limited to 228,000 pounds. What is the total contribution margin Cane Company will earn? 15. Assume that Cane's customers would buy a maximum of 94,000 units of Alpha and 74,000 units of Beta. Also assume that the company's raw material avallable for production is limited to 228,000 pounds. If Cane uses its 228,000 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.)
