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this question in managerial accounting has an absurd amount of parts! 13. Assume that Cane's customers would buy a maximum of 93,000 units of Alpha
this question in managerial accounting has an absurd amount of parts!
13. Assume that Cane's customers would buy a maximum of 93,000 units of Alpha and 73,000 units of Beta. Also assume that the raw material available for production is limited to 227,000 pounds. How many units of each product should Cane produce to maximize its profits? 8. Assume that Cane normally produces and sells 73,000 Betas and 93,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 13,000 units. What is the financial advantage (disadvantage) of discontinuing the Beta product line? Required: 1. What is the total amount of traceable fixed manufacturing overhead for each of the two products? 11. How many pounds of raw material are needed to make one unit of each of the two products? 14. Assume that Cane's customers would buy a maximum of 93,000 units of Alpha and 73,000 units of Beta. Also assume that the raw material avsilable for production is limited to 227,000 pounds. What is the total contribution margin Cane Company will earn? 15. Assume that Cane's customers would buy a maximum of 93,000 units of Alpha and 73,000 units of Beta. Also assume that the company's raw material available for production is limited to 227,000 pounds. If Cane uses its 227,000 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.) 3. Assume that Cane expects to produce and sell 93,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 23,000 additional Alphas for a price of $132 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? 9. Assume that Cane expects to produce and sell 93,000 Alphas during the current year. A supplier has offered to manufacture and deliver 93,000 Alphas to Cane for a price of $132 per unit. What is the financjal advantage (disadvantage) of buying 93,000 units from the supplier instead of making those units? 7. Assume that Cane normolly produces and sells 53,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line? Required information The Foundational 15 (Algo) [LO13-2, LO13-3, LO13-4, LO13-5, LO13-6] [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $185 and $150, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 119,000 units of each product. Its average cost per unit for each product at this level of activity are given below: 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. 12. What contribution margin per pound of raw material is earned by each of the two products? (Round your answers to 2 decimal places.) 10. Assume that Cane expects to produce and sell 68,000 Alphas during the current year. A supplier has offered to manufacture and deliver 68,000 Alphas to Cane for a price of $132 per unit. What is the financial advantage (disodvantage) of buying 68,000 units from the supplier instead of making those units? 4. Assume that Cane expects to produce and sell 103,000 Betas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 2,000 additional Betas for a price of $61 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? 6. Assume that Cane normally produces and sells 103,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line? 5. Assume that Cane expects to produce and sell 108,000 Alphas during the current year. One of Cane's sales representatives nos found a new customer who is willing to buy 23,000 additional Alphas for a price of $132 per unit; however pursuing this opportunity will decrease Alpha sales to regular customers by 12,000 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. What is the financial advantage (disadvantage) of acceptigg the new customer's order Step by Step Solution
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