3 Cane Company manufactures two products called Alpha and Beta that sell for $185 and $120, respectively. Each productuses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 112,000units of each product. Its average cost per unit for each product at this level of activity is given below:Direct materialsDirect laborVariable manufacturing overheadTraceable fixed manufacturing overheadVariable selling expensesCommon fixed expensesTotal cost per unitAlpha$ 302220242023$ 139Financial advantageBeta$ 10291326The company's traceable fixed manufacturing overhead is avoidable, whereas its common fixed expenses areunavoidable and have been allocated to products based on sales dollars.Answer is not complete.1618$ 11210. Assume Cane expects to produce and sell 58,000 Alphas during the current year. A supplier offered to manufacture and deliver58,000 Alphas to Cane for a price of $112 per unit. What is the financial advantage (disadvantage) of buying 58,000 units from thesupplier instead of making those units?

MAKE OR BUY DECISIONThe make-or-buy decision is choosing between manufacturing a product within a…

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 is given below: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit The company's traceable fixed manufacturing overhead is avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 10. Assume Cane expects to produce and sell 58,000 Alphas during the current year. A supplier 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? Financial advantage Alpha Beta $ 30 $ 10 22 29 11 20 13 24 26 20 16 23 18. $ 139 $ 112 Answer is not complete. ✓

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 is given below: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit The company's traceable fixed manufacturing overhead is avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 10. Assume Cane expects to produce and sell 58,000 Alphas during the current year. A supplier 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? Financial advantage Alpha Beta $ 30 $ 10 22 29 11 20 13 24 26 20 16 23 18. $ 139 $ 112 Answer is not complete. ✓

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Apple Juice Corp plans to take up a project that will cost $150,000 of investment in Building and $80,000 in new machinery. Apple Juice Corp has already spent $8000 on research and analysis about the products that will be developed in this unit. By taking up this project, Apple Juice Corp. estimates additional cash flows of $85000 per annum for the next five years. COGS are expected to be 40% of the revenues, SG&A will be 4% of the revenues. This project will require an additional inventory of $60,000 and an increase in payables by $25000 Tax Rate is 20% The target Debt: Equity is 1:4 Cost of new debt: 6% Cost of Equity: Need to calculate using the beta of 0.9, Rf of 4%, and market risk premium of 6% The equipment that would be used has a 3-year tax life. Under the new tax law, the equipment used in the project is eligible for 100% bonus depreciation, so it will be fully depreciated at t = 0. The Salvage value of Building and Machinery after 5 years is $100,000. You, as a financial…
WHat ia 2 plus 2
88 MULTIPLE CHOICE Question 6 Listen If f(x)= and g(x) = x²-16, then what is the value of f(g(4))? A 0 B 4 C undefined
Q2) 4. What is sensitivity analysis?
Is there a way you can provide an example for number 3?
A. For what values of x is f(x) NOT y 00 6 4 2 X -3-2-10 1 2 3 4 5
What about requirement 4+5
please explain the answer B ?
can you answer d
7. Explain the M&M Proposition I and II using your own words.
Question 3. Define what is Riba & describe two types of Riba with example for each.
D nctions Question 10 Use the diagram below to find each of the following: sine of point a • cose of point b • tane of point c d e