Required information [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $195 and $150, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 123,000 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 Contribution margin per pound Alpha $ 40 34 22 30 27 30 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. Alpha Beta $15 12. What contribution margin per pound of raw material is earned by each of the two products? (Round your answers to 2 decimal places.) Beta 28 20 33 23 25 $183 $ 144
Required information [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $195 and $150, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 123,000 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 Contribution margin per pound Alpha $ 40 34 22 30 27 30 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. Alpha Beta $15 12. What contribution margin per pound of raw material is earned by each of the two products? (Round your answers to 2 decimal places.) Beta 28 20 33 23 25 $183 $ 144
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Subject : Accounting
![Required information
[The following information applies to the questions displayed below.]
Cane Company manufactures two products called Alpha and Beta that sell for $195 and $150, respectively. Each product
uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 123,000
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
Contribution margin per pound
Alpha
$ 40
34
22
30
27
30
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.
Alpha
Beta
$15
12. What contribution margin per pound of raw material is earned by each of the two products? (Round your answers to 2 decimal
places.)
Beta
28
20
33
23
25
$183 $ 144](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8fc66754-dc05-453a-a4c8-c79196bcb5d1%2F993ed17e-8961-4f1c-8b37-5dcdb69f284e%2F9j95wz_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Cane Company manufactures two products called Alpha and Beta that sell for $195 and $150, respectively. Each product
uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 123,000
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
Contribution margin per pound
Alpha
$ 40
34
22
30
27
30
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.
Alpha
Beta
$15
12. What contribution margin per pound of raw material is earned by each of the two products? (Round your answers to 2 decimal
places.)
Beta
28
20
33
23
25
$183 $ 144
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