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 unit costs for each product at this level of activity are given below Alpha Beta Direct materials $ 40 $ 24 Direct labor 38 34 Variable manufacturing overhead 25 23 Traceable fixed manufacturing overhead 33 36 Variable selling expenses 30 26 Common fixed expenses 33 28 Total cost per unit $ 199 $ 171 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 113,000 Alphas during the current year One of Cane's sales representatives has found a new customer that is willing to buy 28,000 additional Alphas for a price of $152 per unit If Cane accepts the customers offer, it will decrease Alpha sales to regular customers by 13,000 units a Calculate the incremental net operating income if the order is accepted (Loss amount should be indicated with a minus sign ) 6 Assume that Cane normally produces and sells 108,000 Betas per year If Cane discontinues the Beta product line, how much will profits decrease Decrease by 7 Assume that Cane normally produces and sells 58,000 Betas per year If Cane discontinues the Beta product line, how much will profits increase Increase by 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 If Cane discontinues the Beta product line, how much would profits increase or decrease 9 Assume that Cane expects to produce and sell 98,000 Alphas during the current year A supplier has offered to manufacture and deliver 98,000 Alphas to Cane for a price of $152 per unit If Cane buys 98,000 units from the supplier instead of making those units, how much will profits increase or decrease 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 If Cane buys 73,000 units from the supplier instead of making those units, how much will profits increase or decrease 15 Assume that Canes customers would buy a maximum of 98,000 units of Alpha and 78,000 units of Beta Also assume that the companys raw material available for production is limited to 248,000 pounds Up to how much should it be willing to pay per pound for additional raw materials (Round your answer to 2 decimal places )

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[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.

[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 unit costs for each product at this level of activity are given below:

	Alpha			Beta
Direct materials		$	40		$	24
Direct labor			38			34
Variable manufacturing overhead			25			23
Traceable fixed manufacturing overhead			33			36
Variable selling expenses			30			26
Common fixed expenses			33			28

Total cost per unit		$	199		$	171

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.

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 that is willing to buy 28,000 additional Alphas for a price of $152 per unit. If Cane accepts the customers offer, it will decrease Alpha sales to regular customers by 13,000 units.

Calculate the incremental net operating income if the order is accepted? (Loss amount should be indicated with a minus sign.)

6.	Assume that Cane normally produces and sells 108,000 Betas per year. If Cane discontinues the Beta product line, how much will profits decrease?

Decrease by______

Assume that Cane normally produces and sells 58,000 Betas per year. If Cane discontinues the Beta product line, how much will profits increase?

Increase by______

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. If Cane discontinues the Beta product line, how much would profits increase or decrease?

9.	Assume that Cane expects to produce and sell 98,000 Alphas during the current year. A supplier has offered to manufacture and deliver 98,000 Alphas to Cane for a price of $152 per unit. If Cane buys 98,000 units from the supplier instead of making those units, how much will profits increase or decrease?

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. If Cane buys 73,000 units from the supplier instead of making those units, how much will profits increase or decrease?

15.

Assume that Canes customers would buy a maximum of 98,000 units of Alpha and 78,000 units of Beta. Also assume that the companys raw material available for production is limited to 248,000 pounds. Up to how much should it be willing to pay per pound for additional raw materials? (Round your answer to 2 decimal places.)