Answered step by step
Verified Expert Solution
Question
1 Approved Answer
URGENT HELP PLEASE!!!!! hapter 6 Foundational 15 Swed Help Save 5 Required Information The following information applies to the questions displayed below.) Cane Company manufactures
URGENT HELP PLEASE!!!!!
hapter 6 Foundational 15 Swed Help Save 5 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 ansoris 00:45:43 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 $153 Beta #10 25 35 28 10 20 $124 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 105,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 20,000 additional Alphas for a price of $120 per unit; however pursuing this opportunity will decrease Alpha sales to regular customers by 9.000 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. Re SA Req 50 Chapter 6 Foundational 15 0 Seved Help Cannon fixed expenses Total cost per unit 25 $153 20 $124 5 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. Part 5 of 15 00:45.30 5. Assume that Cane expects to produce and sell 105,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 20,000 additional Alphas for a price of $120 per unit; however pursuing this opportunity will decrease Alpha sales to regular customers by 9,000 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. Reg SA Reg 58 What is the financial advantage (disadvantage) of accepting the new customer's order? Pag Req 68 > 6 Part 6 of 15 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: Alpha Heta Direct materials $ 30 5.18 Direct labor JO 25 Variable manufacturing overhead 20 15 Teaceable fixed manufacturing overhead 26 20 Variable selling expenses 22 18 Common fixed expenses 25 20 Total cost per unit $153 $124 00.450 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 6. Assume that Cane normally produces and sells 100.000 Betos per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line? 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 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