View previous attempt 1 Required information The Foundational 15 [LO12-2, L012-3, LO12-4, L012-5, LO12-6] The following information applies to the questions displayed below. Part 14 of 15 Cane Company manufactures two products called Alpha and Beta that sell for $185 and $120, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 112,000 units of each product. Its average cost per unit for each product at this level of activity are given below 0.33 points Alpha $ 30 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Beta $ 10 29 13 26 16 eBaok 20 20 $139 $112 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 12-14 14. Assume that Cane's customers would buy a maximum of 88,000 units of Alpha and 68,000 units of Beta. Also assume that the company's raw material available for production is limited to 172,000 pounds. What is the maximum contribution margin Cane Company can earn given the limited quantity of raw materials? View previous attempt Required intormation The Foundational 15 [LO12-2, LO12-3, L012-4, LO12-5, LO12-6) The following information applies to the questions displayed below.j Part 10 of 15 Cane Company manufactures two products called Alpha and Beta that sell for $185 and $120, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 112,000 units of each product. Its average cost per unit for each product at this level of activity are given below: 0.33 points Alpha Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Beta s 10 29 13 26 16 18 $112 $ 30 20 24 20 23 $139 eBook 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 12-10 10. Assume that Cane expects to produce and sell 58,000 Alphas during the current year. A supplier has offered to manufacture and deliver 58,000 Alphas to Cane for a price of $112 per unit. What is the financial advantage (disadvantage) of buying 58,000 units from the supplier instead of making those units? View previous attempt Required information The Foundational 15 [LO12-2, LO12-3, LO12-4, LO12-5, LO12-6) [The following information applies to the questions displayed below.) Part 6 of 15 Cane Company manufactures two products called Alpha and Beta that sell for $185 and $120, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 112,000 units of each product. Its average cost per unit for each product at this level of activity are given below: 0.33 points Alpha s 30 Beta $ 10 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit eBook 20 24 20 23 $139 13 26 18 $112 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 12-6 6. Assume that Cane normally produces and sells 98,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line
