Question: ver Chapter 12 (in-class) Help Save&Exit Submit Check my work Required information The Foundetional 15 LO12-2, Lo12-3, L012-4, LO12-5, L012-6) The following information applies to
ver Chapter 12 (in-class) Help Save&Exit Submit Check my work Required information The Foundetional 15 LO12-2, Lo12-3, L012-4, LO12-5, L012-6) The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $120 and $80, respectively Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 100,000 units of each product. Its average cost per unit for each product at this level of activity are given below Direct naterials Direct labor Variable nanufactur ing overhead Traceable fixed nanufacturing ovethead Variable selling expenses Conson fixed expences Total cost per nit 30 20 $12 15 16 12 18 $100 $68 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. Foundational 12-10 0. Assume that Cane expects to produce and sell 50,000 Alphas during the current year. A supplier has offered to manufacture and deliver 50,000 Alphas to Cane for a price of $80 per unit. What is the financial advantage (disadvantage) of buying 50,000 units from the supplier instead of making those units
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