{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-09T16:31:19-04:00", "answer_date": "2024-06-09 16:31:19", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "2525909", "url": "\/study-help\/questions\/the-following-information-applies-to-the-questions-displayed-below-2525909", "question_creation_date_js": "2024-06-09T16:31:19-04:00", "question_creation_date": "Jun 09, 2024 04:31 PM", "meta_title": "[Solved] The following information applies to the | SolutionInn", "meta_description": "Answer of - The following information applies to the questions displayed below. ] Cane Company manufactures two products called Al | SolutionInn", "meta_keywords": "information,applies,questions,displayed,below,cane,company,manufactures,two,products,called,alpha", "question_title_h1": "The following information applies to the questions displayed below. ] Cane Company manufactures two products called Alpha and Beta that sell for $ 1 3", "question_title": "The following information applies to the questions displayed below. ] Cane Company", "question_title_for_js_snippet": "The following information applies to the questions displayed below Cane Company manufactures two products called Alpha and Beta that sell for $ 1 3 0 and $ 9 0 , respectively Each product uses only one type of raw material that costs $ 5 per pound The company has the capacity to annually produce 1 0 2 , 0 0 0 units of each product Its unit costs for each product at this level of activity are given below AlphaBetaDirect materials$ 2 5 $ 1 0 Direct labour 2 2 2 1 Variable manufacturing overhead 1 7 7 Traceable fixed manufacturing overhead 1 8 2 0 Variable selling expenses 1 4 1 0 Common fixed expenses 1 7 1 2 Cost per unit$ 1 1 3 $ 8 0 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars 5 Assume that Cane expects to produce and sell 9 7 , 0 0 0 Alphas during the current year One of Cane's sales representatives has found a new customer that is willing to buy 1 2 , 0 0 0 additional Alphas for a price of $ 8 8 per unit If Cane accepts the customers offer, it will decrease Alpha sales to regular customers by 7 , 0 0 0 units a Calculate the incremental net operating income if the order is accepted ( Loss amount should be indicated with a minus sign )", "question_description": "
The following information applies to the questions displayed below.<\/span>]<\/mi><\/mrow><\/math> Cane Company manufactures two products called Alpha and Beta that sell for $<\/span>1<\/mn>3<\/mn>0<\/mn><\/mrow><\/math> and $<\/span>9<\/mn>0<\/mn>,<\/mo><\/mrow><\/math> respectively. Each product uses only one type of raw material that costs $<\/span>5<\/mn><\/mrow><\/math> per pound. The company has the capacity to annually produce <\/span>1<\/mn>0<\/mn>2<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn><\/mrow><\/math> units of each product. Its unit costs for each product at this level of activity are given below: AlphaBetaDirect materials$<\/span>2<\/mn>5<\/mn><\/mrow><\/math> $<\/span>1<\/mn>0<\/mn><\/mrow><\/math> Direct labour <\/span>2<\/mn>2<\/mn><\/mtext><\/mtext>2<\/mn>1<\/mn><\/mrow><\/math> Variable manufacturing overhead <\/span>1<\/mn>7<\/mn><\/mtext><\/mtext>7<\/mn><\/mrow><\/math> Traceable fixed manufacturing overhead <\/span>1<\/mn>8<\/mn><\/mtext><\/mtext>2<\/mn>0<\/mn><\/mrow><\/math> Variable selling expenses <\/span>1<\/mn>4<\/mn><\/mtext><\/mtext>1<\/mn>0<\/mn><\/mrow><\/math> Common fixed expenses <\/span>1<\/mn>7<\/mn><\/mtext><\/mtext>1<\/mn>2<\/mn><\/mrow><\/math> Cost per unit$<\/span>1<\/mn>1<\/mn>3<\/mn><\/mrow><\/math> $<\/span>8<\/mn>0<\/mn><\/mrow><\/math> The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars<\/span>.<\/mn>5<\/mn>.<\/mo><\/mrow><\/math> Assume that Cane expects to produce and sell <\/span>9<\/mn>7<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn><\/mrow><\/math> Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy <\/span>1<\/mn>2<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn><\/mrow><\/math> additional Alphas for a price of $<\/span>8<\/mn>8<\/mn><\/mrow><\/math> per unit. If Cane accepts the customers offer, it will decrease Alpha sales to regular customers by <\/span>7<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn><\/mrow><\/math> units.a<\/span>.<\/mo><\/mrow><\/math> Calculate the incremental net operating income if the order is accepted? <\/span>(<\/mi><\/mrow><\/math>Loss amount should be indicated with a minus sign.<\/span>)<\/mi><\/mrow><\/math> <\/div><\/span> <\/div><\/div>", "transcribed_text": "", "related_book": { "title": "Using Financial Accounting Information The Alternative to Debits and Credits", "isbn": "978-0-538-4527, 0-538-45274-9, 978-1133161646", "edition": "7th Edition", "authors": "Gary A. Porter, Curtis L. Norton", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/79.jpg", "uri": "\/textbooks\/using-financial-accounting-information-the-alternative-to-debits-and-credits-7th-edition-79", "see_more_uri": "" }, "free_related_book": { "isbn": "978-8483737613", "uri": "\/textbooks\/corporate-tax-harmonisation-in-the-european-union-harmonisation-of-the-tax-connecting-factors-1st-edition-978-8483737613-115049", "name": "Corporate Tax Harmonisation In The European Union Harmonisation Of The Tax Connecting Factors", "edition": "1st Edition" }, "question_posted": "2024-06-09 16:31:19", "see_more_questions_link": "\/study-help\/questions\/business-finance-2024-August-28", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/dipole-p-is-located-at-distance-r-from-infinitely", "description": "A dipole p is located at a distance r from an infinitely long line charge with a uniform linear charge density . 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