The Foundational 15 (Algo) [LO11-2, LO11-3, LO11-4, LO11-5, LO11-6] [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 average cost per unit for each product at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Alpha Beta $ 40 $ 24 38 34 25 23 33 36 30 26 33 28 $199 $171 Total cost per unit 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. Foundational 11-1 (Algo) Required: 1. What is the total amount of traceable fixed manufacturing overhead for each of the two products? Traceable fixed manufacturing overhead Alpha Beta Check my wom 2. What is the company's total amount of common fixed expenses? Total common fixed expenses Foundational 11-3 (Algo) 3. Assume that Cane expects to produce and sell 98,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 28,000 additional Alphas for a price of $152 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? 04:05:33 eBook Print References Foundational 11-4 (Algo) 4. Assume that Cane expects to produce and sell 108,000 Betas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 3,000 additional Betas for a price of $81 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? Foundational 11-5 (Algo) 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 who is willing to buy 28,000 additional Alphas for a price of $152 per unit; however pursuing this opportunity will decrease Alpha sales to regular customers by 13,000 units. a. What is the financial advantage (disadvantage) of accepting the new customer's order? b. Based on your calculations above should the special order be accepted? Complete this question by entering your answers in the tabs below. Req SA Req 58. What is the financial advantage (disadvantage) of accepting the new customer's order? Rag SA Req 58 > 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 who is willing to buy 28,000 additional Alphas for a price of $152 per unit; however pursuing this opportunity will decrease Alpha sales to regular customers by 13,000 units. a. What is the financial advantage (disadvantage) of accepting the new customer's order? b. Based on your calculations above should the special order be accepted? Complete this question by entering your answers in the tabs below. Req SA Req 5B Based on your calculations in 5a should the special order be accepted? Yes ONO > Foundational 11-6 (Algo) 6. Assume that Cane normally produces and sells 108,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line? Foundational 11-7 (Algo) 7. Assume that Cane normally produces and sells 58,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line? Foundational 11-8 (Algo) 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. What is the financial advantage (disadvantage) of discontinuing the Beta product line? Foundational 11-9 (Algo) 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. What is the financial advantage (disadvantage) of buying 98,000 units from the supplier instead of making those units? 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. What is the financial advantage (disadvantage) of buying 73,000 units from the supplier instead of making those units? Foundational 11-11 (Algo) 11. How many pounds of raw material are needed to make one unit of each of the two products? Alpha Beta Pounds of raw materials per unit Foundational 11-12 (Algo) 12. What contribution margin per pound of raw material is earned by each of the two products? (Round your answers to 2 decimal places.) Alpha Beta Contribution margin per pound Foundational 11-13 (Algo) 13. Assume that Cane's customers would buy a maximum of 98,000 units of Alpha and 78,000 units of Beta. Also assume that the raw material available for production is limited to 248,000 pounds. How many units of each product should Cane produce to maximize its profits? Alpha Beta Units produced Foundational 11-14 (Algo) 14. Assume that Cane's customers would buy a maximum of 98,000 units of Alpha and 78,000 units of Beta. Also assume that the raw material available for production is limited to 248,000 pounds. What is the total contribution margin Cane Company will earn? Total contribution margin Foundational 11-15 (Algo) 15. Assume that Cane's customers would buy a maximum of 98,000 units of Alpha and 78,000 units of Beta. Also assume that the company's raw material available for production is limited to 248,000 pounds. If Cane uses its 248,000 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.) Maximum price to be paid per pound