Required information [The following information applies to the questions displayed below] Cane Company manufactures two products...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6648fb79c93de_0016648fb79642dd.jpg)
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 $130 and $90, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 102,000 units of each product. Its unit costs for each product at this level of activity are given below. Direct materials Alpha $25 Beta 510 Direct labour Variable manufacturing overhead 22 21 37 7 Traceable fixed manufacturing overhead 18 20 Variable selling expenses 14 10 Common fixed expenses 17 12 Cost per unit 5113 5.80 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. 3. Assume that Cane expects to produce and sell 82,000 Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 12.000 additional Alphas for a price of $88 per unit. If Cane accepts the customer's offer how much will its profits increase or decrease? Net operating income increases by $ 204.000 Required information [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $130 and $90, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 102,000 units of each product. Its unit costs for each product at this level of activity are given below. Direct materials Alpha $25 Beta 510 Direct labour Variable manufacturing overhead 22 21 37 7 Traceable fixed manufacturing overhead 18 20 Variable selling expenses 14 10 Common fixed expenses 17 12 Cost per unit 5113 5.80 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. 3. Assume that Cane expects to produce and sell 82,000 Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 12.000 additional Alphas for a price of $88 per unit. If Cane accepts the customer's offer how much will its profits increase or decrease? Net operating income increases by $ 204.000
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Consider a social network where people are represented as vertices and friendships as edges. If there are 1 0 people in the network and each person is friends with 3 others, calculate the total...
-
Workplace Writing: Separating Myths From Facts Todays knowledge workers are doing more writing on the job than ever before. Flattened management hierarchies, heightened global competition, expanded...
-
Using the pKa values in Table 17.1, predict the products of the following reactions: a. b. c. d. OCH3 CH3 NaOH CH3 Table 17.1 The pKa Values of the Conjugate Adds of the Leaving Groups of Carbonyl...
-
John and Candy Moody operate Western Ski Centers, a small retail ski store in southwest Colorado. The couple is concerned that, despite increasing sales, they appear to be making less money each...
-
The Marino Company had the following balance sheet on January 1, 2010: On January 2, 2010, the Paul Company purchased the Marino Company by acquiring all its outstanding shares for $300,000 cash. On...
-
3 Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be Indicated with minus sign.) KAYAK COMPANY 6 points 01:54:25 Cash...
-
Which of the following is included in GDP? Welfare payments received by some households Fees received by stockbrokers Cash gifts from relatives during the holidays Payments received from selling...
-
1. How much money you would need to invest today in order to have $10 000 in 5 years, if you are investing at 8% per year, compounded monthly.
-
Based on what is related to the levels/units of analysis of Organizational Behavior, what do you feel it is important to understand these perspectives? Individual, Group, or Organization Level?
-
A given set of scores forms a normal distribution. The mean of the set of scores is 80 and the standard deviation is 6. What percentage of the scores lie between 80 and 86?
-
f'(x)= Find the derivative of f(x) = eb + b. Assume that b is a positive constant.
-
The number of franchises of a dance studio has been growing exponentially since the first studio opened in 1998. Since then the number of studios has grown at a rate of 14% each year. a) Create an...
-
How do management accountants get value from, and measure the value of the information obtained from the digitalization (technological advancement) accounting system for decision making? How will it...
-
In muscle tissue, the ratio of phosphorylase a to phosphorylase b determines the rate of conversion of glycogen to glucose 1phosphate. Classify how each event affects the rate of glycogen breakdown...
-
What is rational ignorance?
-
The ability-to-pay principle states: a. Those with the greatest ability to pay taxes should pay more. b. Those with the least ability to pay taxes should pay more. c. Individuals receiving the...
-
What is the median voter model?
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App