Required Information The Foundational 15 (Algo) [LO13-2, LO13-3, LO13-4, LO13-5, LO13-6] [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $155 and $115, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 110,000 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 Connon fixed expenses Total cost per unit Units produced Alpha $24 23 22 23 Alpha 19 22 Beta Beta 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. $12 26 12 Foundational 13-13 (Algo) 13. Assume that Cane's customers would buy a maximum of 87,000 units of Alpha and 67,000 units of Beta. Also assume that the raw material available for production is limited to 168,000 pounds. How many units of each product should Cane produce to maximize its profits? 25 15 17 $ 107
Required Information The Foundational 15 (Algo) [LO13-2, LO13-3, LO13-4, LO13-5, LO13-6] [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $155 and $115, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 110,000 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 Connon fixed expenses Total cost per unit Units produced Alpha $24 23 22 23 Alpha 19 22 Beta Beta 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. $12 26 12 Foundational 13-13 (Algo) 13. Assume that Cane's customers would buy a maximum of 87,000 units of Alpha and 67,000 units of Beta. Also assume that the raw material available for production is limited to 168,000 pounds. How many units of each product should Cane produce to maximize its profits? 25 15 17 $ 107
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
H1.
Account
![Required Information
The Foundational 15 (Algo) [LO13-2, LO13-3, LO13-4, LO13-5, LO13-6]
[The following information applies to the questions displayed below]
Cane Company manufactures two products called Alpha and Beta that sell for $155 and $115, respectively. Each product
uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 110,000
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
Connon fixed expenses
Total cost per unit
Units produced
Alpha
$24
23
22
23
Alpha
19
22
Beta
Beta
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.
$12
26
12
Foundational 13-13 (Algo)
13. Assume that Cane's customers would buy a maximum of 87,000 units of Alpha and 67,000 units of Beta. Also assume that the raw
material available for production is limited to 168,000 pounds. How many units of each product should Cane produce to maximize its
profits?
25
15
17
$ 107](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F32c0cfc8-ebc2-43a6-9c48-ae841504d819%2F6e05bc84-660e-469d-94d3-bb4701644f3d%2Fborlu8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required Information
The Foundational 15 (Algo) [LO13-2, LO13-3, LO13-4, LO13-5, LO13-6]
[The following information applies to the questions displayed below]
Cane Company manufactures two products called Alpha and Beta that sell for $155 and $115, respectively. Each product
uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 110,000
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
Connon fixed expenses
Total cost per unit
Units produced
Alpha
$24
23
22
23
Alpha
19
22
Beta
Beta
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.
$12
26
12
Foundational 13-13 (Algo)
13. Assume that Cane's customers would buy a maximum of 87,000 units of Alpha and 67,000 units of Beta. Also assume that the raw
material available for production is limited to 168,000 pounds. How many units of each product should Cane produce to maximize its
profits?
25
15
17
$ 107
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