Cane Company manufactures two products called Alpha and Beta that sell for $195 and $150, respectively....

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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 is given below: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Common fixed expenses Variable selling expenses Total cost per unit Alpha Beta $ 40 $ 15 34 28 22 20 30 33 27 23 30 25 $ 183 $ 144 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. 1. What is the total traceable fixed manufacturing overhead for each of the two products? 2. What is the company's total common fixed expenses? 7.. Assume Cane normally produces and sells 55,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line? 8.Assume Cane normally produces and sells 75,000 Betas and 95,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 15,000 units. What is the financial advantage (disadvantage) of discontinuing the Beta product line? 9. Assume Cane expects to produce and sell 95,000 Alphas during the current year. A supplier offered to manufacture and deliver 95,000 Alphas to Cane for a price of $140 per unit. What is the financial advantage (disadvantage) of buying 95,000 units from the supplier instead of making those units? 10. Assume Cane expects to produce and sell 70,000 Alphas during the current year. A supplier offered to manufacture and deliver 70,000 Alphas to Cane for a price of $140 per unit. What is the financial advantage (disadvantage) of buying 70,000 units from the supplier instead of making those units? 11. How many pounds of raw material are needed to make one unit of each of the two products? 13. Assume Cane's customers would buy a maximum of 95,000 units of Alpha and 75,000 units of Beta. Also assume the raw material available for production is limited to 245,000 pounds. How many units of each product should Cane produce to maximize its profits? 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 is given below: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Common fixed expenses Variable selling expenses Total cost per unit Alpha Beta $ 40 $ 15 34 28 22 20 30 33 27 23 30 25 $ 183 $ 144 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. 1. What is the total traceable fixed manufacturing overhead for each of the two products? 2. What is the company's total common fixed expenses? 7.. Assume Cane normally produces and sells 55,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line? 8.Assume Cane normally produces and sells 75,000 Betas and 95,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 15,000 units. What is the financial advantage (disadvantage) of discontinuing the Beta product line? 9. Assume Cane expects to produce and sell 95,000 Alphas during the current year. A supplier offered to manufacture and deliver 95,000 Alphas to Cane for a price of $140 per unit. What is the financial advantage (disadvantage) of buying 95,000 units from the supplier instead of making those units? 10. Assume Cane expects to produce and sell 70,000 Alphas during the current year. A supplier offered to manufacture and deliver 70,000 Alphas to Cane for a price of $140 per unit. What is the financial advantage (disadvantage) of buying 70,000 units from the supplier instead of making those units? 11. How many pounds of raw material are needed to make one unit of each of the two products? 13. Assume Cane's customers would buy a maximum of 95,000 units of Alpha and 75,000 units of Beta. Also assume the raw material available for production is limited to 245,000 pounds. How many units of each product should Cane produce to maximize its profits?