[The following information applies to the questions displayed below.]

Cane Company manufactures two products called Alpha and Beta that sell for $195 and $150, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 123,000 units of each product. Its unit costs for each product at this level of activity are given below:

	Alpha				Beta
Direct materials		$	40			$	15
Direct labor			34				28
Variable manufacturing overhead			22				20
Traceable fixed manufacturing overhead			30				33
Variable selling expenses			27				23
Common fixed expenses			30				25
Total cost per unit		$	183			$	144

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.

The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $195 and $150, respectively, Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 123,000 units of each product. Its unit costs for each product at this level of activity are glven below 11. 1.00 points Alpha 2. What is the company's total amount of common fixed expenses? Beta $ 15 otal common fixed expenses Direct materials Direct labor Variable manufacturing overhead Traceable fed manufacturing overhead Variable selling expenses Common fixed expenses 20 34 22 30 27 30 23 Total cost per unit $183 $144 The company considers its traceable foxed manufacturing overhead to be avoidable, whereas its common foed expenses are deemed unavoidable and have been allocated to products based on sales dollars. 12. 1.00 points 1.00 points 3. Assume that Cane expects to produce and sell 96,000 Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 25,000 additional Alphas for a price of $140 per unit. If Cane accepts the customer's offer, how much will its profits increase or decrease? Required: 1. What is the total amount of traceable fixed manufacturing overhead for the Alpha product line Beta product line? operating income Alpha Beta Traceable fixed manufacturing overhead Exam 3 100 points b. Based on your calculations above should the special order be accepted? 4. Assume that Care expects to produce and sell 105,000 Betas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 2,000 additional Betas for a price of $63 per unit. If Cane accepts the customer's offer, how much will its profits increase or decrease? Yes No operating incom value 1.00 points 6. Assume that Cane normally produces and sells 105,000 Botas per year. If Cane discontinues the Beta product line, how much will profits increase or decrease? 4 1.00 points 5. Assume that Care expects to produce and sell 110,000 Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 25,000 additional Aiphas for a price of $140 per unit. If Cane accepts the customer's offer, it wil decrease Alpha sales to regular customers by 12,000 units a Calculate the incremental net operating income if the order is accepted? (Loss amount should be a minus sign 3. Indicated with 18. 1.00 points incrementalne operating income 11. How many pounds of raw material are needed to make one unit of Alpha and one unit of Beta? Pounds of raw materials per unit 16. 1.00 points 8. Assume that Cane normally produces and sets 75.000 Betas and 95.000 Alphas per year. Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 15,000 units. Cane discontinues the Beta product line, how much would profits increase or decrease? 19. 1.00 points 12. What contribution margin per pound of raw material is eamed by Alpha and Beta? (Round your answers to 2 decimal places.) Contribution margin per pound 6 20. value 1.00 points 17 1.00 points Assume that Care expects to produce and sell 95.000 Aiphas during the current year. A supplier has od deliver 5,000 Alphas to Care for a price of $140 per unit. If Cane buys 95.000 units from the supplier instead of making those units, how much wil profits increase or offered to manufacture 13. Assume that Cane's customers would buy a maximum of $5,000 units of Alpha and 75,000 units of Beta. Also assume that the company's raw material available for production is limited to 245,000 pounds. How many units of each product should Cane produce to maximize its profits? 5 Alpha Beta Units produced 7