updated: it is one question 15 parts
Requlred Information [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107,000 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. Assume that Cane normally produces and sells 95,000 Betas per year. What is the financial advantage (disadvantage) of continuing the Beta product line? Required Informotion [The following infomation applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107,000 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 overtiead to be avoidabie, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Assume that Cane normally produces and sells 45,000 Betas per year. What is the financial advantage (disadvantage) of continuing the Beta product line? Required information [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107,000 units of each product. lis 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 ayoidable. whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Assume that Cane expects to produce and sell 85.000 Alphas during the curtent year. A supplier has offered to manufacture and eliver 85,000 Alphas to Cane for a price of $100 per unit. What is the financial advantage (disadvantage) of buying 85,000 units from e supplier instead of making those units? Requlred Information [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107,000 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 bosed on sales dollars 11. How many pounds of raw material are needed to make one unit of each of the two products? Requlred information [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107.000 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. 13. Assume that Cane's customers would buy a maximum of 85,000 units of Alpha and 65,000 units of Beta. Also assume that the raw material availabie for production is limited to 166,000 pounds. How many units of each product shouid Cane produce to maximize its profits? Required Informotion [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $150 and $10.5, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107.000 units of each product its average cost per unit for each pioduct at this level of activity are given below: The company considers its traceable fixed manufacturing ovethead to be avoldable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales doliars 5. Assume that Cane's customers would buy a maximum of 85.000 units of Alpha and 65,000 units of Beta, Also assume that the ompany's taw matefial avalioble for production is limited to 166,000 pounds. if Cane uses its 166,000 pounds of raw materiols, up to ow much should it be willing to pay per pound for additional raw materibls? (Round your answer to 2 decimal places.) Required Information [The following information applies to the questions displayed below.] Cane Company manufactures two products catled Alpha and Beta that sell for $150 and $105, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107.000 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 aliocated to products based on sales dollars. Requlred: 1. What is the total amount of traceable fixed manufacturing overhead for each of the two products? Requlred Information [The following information applies to the questions displayed below] Cane Compary manufactures two products called Alpha and Beta that sell for $150 and $105, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107.000 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. 2. What is the company's total amount of common fixed expenses? Requlred Information [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107,000 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. Assume that Cane expects to produce and sell 85.000 Alphas during the current year. One of Cane's sales representatives has und a new customer who is willing to buy 15,000 additional Alphas for a price of $100 per unit. What is the financial advantage is advantage) of accepting the new customer's order? Requlred Information [The following information applies to the questions displayed below. Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107.000 units of each product. lts average cost per unit for each product at this level of activity are given below: The company considers its traceable fixed manufactufing overnead to be avoidabie, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars Assume that Cane expects to produce and sell 95.000 Betas during the current year. One of Cane's sales representatives has found new customer who is willing to buy 5.000 additional Betas for a price of $44 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? Requlred Informatlon [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107,000 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. 5. Assume that Cane expects to produce and sell 100,000 Alphas during the current year, One of Cane's sales representatives has found a new customer who is willing to buy 15.000 additional Alphas for a price of $100 per unit: however pursuing this opportunity Will decrease Alpha sales to regular customers by 8,000 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 accepting the new customer's order? Requlred Information [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105. respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107.000 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. Assume that Cane normally produces and sells 95.000 Betas per year. What is the financial advantage (disadvantage) of continuing the Beta product line? Requlred Informotion [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105. respectively, Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107.000 units of each product. its average cost per unit for each product at this level of activity are given below: The company considers its taceable fixed manufacturing overhead to be avoidoble. whereas its common foxed expenses are unavoidable and have been allocated to products based on sales dollars. Assume that Cane normally produces and selis 45,000 Betas per year. What is the financial advantage (disadvantage) of scontinuing the Beta product line? Required Information [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107.000 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 3. Assume that Cane normally produces and selis 65.000 Betas and 85.000 Alphas per year. If Cane discontinues the Beta product ine, its sales representatives could increase sales of Alpha by 20.000 units. What is the financlal advantage (disadvantage) of discontinuing the Beta product line? Required Information WThe following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107,000 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 saies dollars. 9. Assume that Cane expects to produce and sell 85,000 Alphas during the current year. A suppliet has offered to manufacture and deliver 85.000 Alphas to Cane for a price of $100 per unit. What is the financial advantage (disadvantage) of buying 85.000 units from the supplier instead of making those units? Requlred Information [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105. respectively. Each product uses only one type of raw materiai that costs $5 per pound. The company has the capacity to annually produce 107.000 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. 0. Assume that Cane expects to produce and sell 55,000 Alphas during the current year. A supplier has offered to manufacture and feliver 55.000 Alphas to Cane for a price of $100 per unit. What is the financial advantage (disadvantage) of buying 55.000 units from he supplier instead of making those units? Required Information [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105. respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107,000 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. 11. How many pounds of raw material are needed to make one unit of each of the two products? Required Information [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107.000 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. 2. What contribution margin per pound of raw material is eamed by each of the two products? (Round your answers to 2 decimal laces.) Required Information [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107,000 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. 3. Assume that Cane's customers would buy a maximum of 85,000 units of Alpha and 65,000 units of Beta. Also assume that the ra naterial available for production is limited to 166,000 pounds. How many units of each product should Cane produce to maximize it? rofits? Required Information [The following information applies to the questions displayed below. Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105. respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107.000 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. 4. Assume that Cane's customers would buy a maximum of 85.000 units of Alpha and 65.000 units of Beta. Also assume that the raw haterial available for production is limited to 166,000 pounds. What is the total contribution margin Cane Company will earn? Required Information [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105, respectively, Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107.000 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 ayoidable. whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollors 5. Assume that Cane's customers would buy a maximum of 85,000 units of Alpha and 65,000 units of Beta. Also assume that the ompany's raw material availabie for production is limited to 166,000 pounds. If Cane uses its 166,000 pounds of raw materiats, up to ow much should it be willing to pay per pound for additional raw materials? (Round your answer to 2 decimol places.)
