Required informetion 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 units of each product. Its average cost per unit for each product at this level of activity are given below Alpha Beta Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead 192 Variable selling expenses Common fixed expenses Total cost per unit 30 $18 16 23 10 15 18 $115 13 $87 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 53,000 Alphas during the current year A supplier has offered to manufacture and deliver 53,000 Alphas to Cane for a price of $92 per unit. What is the finoncial advantage (disadventage) of buying 53.000 units from the supplier instead of making those units? 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 compony 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 Alpha Beta 30 $18 23 16 Direct materials Direct labor Variable manufacturing overhead Traceable fixed nanufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit 10 19 15 21 18 13 $115 $87 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 moximum of 83,000 units of Alpha and 63,000 units of Beta. Also assume that the company's 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 The following information applies to the questions displayed below Cane Company manufactures two products colled 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 Alpha Beta 30 $18 23 16 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead 19 21 10 Variable selling expenses Common fixed expenses Total cost per unit 11 13 15 18 115 $87 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 14 Assume that Cone's customers would buy a maximum of 83,000 units of Alpha and 63,000 units of Beta. Also assume that the company's row material available for production is limited to 200000 pounds. What is the maximum contribution margin Cane Company can earn given the limited quantity of raw materials
