Required information[The following information applies to the questions displayed below.]Cane Company manufactures two products called Alpha and Beta that sell for $240 and $162, respectively. Each productuses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 131,000units of each product. Its average cost per unit for each product at this level of activity is given below:Direct materialsDirect laborVariable manufacturing overheadTraceable fixed manufacturing overheadVariable selling expensesCommon fixed expensesTotal cost per unitAlpha$ 354827353235$212Beta$152325382830$ 159The company's traceable fixed manufacturing overhead is avoidable, whereas its common fixed expenses areunavoidable and have been allocated to products based on sales dollars.8. Assume Cane normally produces and sells 80,000 Betas and 100,000 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 discontinuingthe Beta product line?

The financial advantage or disadvantage of discontinuing a product can be assessed by comparing the…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required information [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $205 and $164, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 127,000 units of each product. Its unit costs for each product at this level of activity are given below: Direct materials Direct labour Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Cost per unit Contribution margin per pound Alpha $40 Alpha 37 24 Beta 32 29 32 $194 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars. Beta $ 24 30 22 12. What contribution margin per pound of raw material is earned by Alpha and Beta? (Round your answers to 2 decimal places.)…
Required information [The following information applies to the questions displayed below.] 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: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $30 Answer is not complete. 22 20 24 20 23 $ 139 Financial advantage Beta $ 10 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. 29 13 26 16 18 $112 8. Assume that Cane normally produces and sells 68,000 Betas and 88,000 Alphas per year. If Cane…
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Required information [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: @ 2 6. If 12,500 units are produced and sold, what is the total amount of variable costs related to the units produced and sold? (Do not round intermediate calculations.) Direct materials Direct labor S Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Total variable cost W 00 Xx # 3 E D C $ 4 R FL 1 1 ( 2023-01...0.40 PM 2023-01...2.52 PM 2022-12 9 M A ^ K O 0 J € Ch P
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Please help me with show all calculation thanku

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