Answered step by step
Verified Expert Solution
Question
1 Approved Answer
URGENT HELP!!! please answer all 3 please just this time 7 Required information The following information applies to the questions displayed below) Cane Company manufactures
URGENT HELP!!! please answer all 3 please just this time
7 Required information The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $170 and $130, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 116,000 units of each product. Its average cost per unit for each product at this level of activity are given below. Part 7 of 15 Beta 00.45:20 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $ 30 30 20 26 22 25 $ 28 25 15 28 18 20 $124 5153 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. 7. Assume that Cane normally produces and sells 50,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line? 13. Assume that Cane's customers would buy a maximum of 90,000 units of Alpha and 70,000 units of Beta. Also assume that the company's raw material available for production is limited to 221,000 pounds. How many units of each product should Cane produce to maximize its profits? Alpha Bota Units produced 15. Assume that Cane's customers would buy a maximum of 90,000 units of Alpha and 70,000 units of Beta. Also assume that the company's raw material available for production is limited to 221.000 pounds. If Cane uses its 221,000 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 pro lo be paid per pound Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started