1. | ||
Alpha | Beta | |
Traceable fixed manufacturing overhead |
1600000 [ 16 * 100000 ] |
1800000 [ 18 * 100000 ] |
2. | |
Total common fixed expenses = ( 15 * 100000 ) + ( 10 * 100000 ) | 2500000 |
3. | |
Alpha | |
Direct materials | 30 |
Direct labor | 20 |
Variable manufacturing overhead | 7 |
Variable selling expenses | 12 |
Variable cost per unit | 69 |
Alpha | |
Sales ( 10000 * 80 ) | 800000 |
(-) Variable cost ( 10000 * 69 ) | 690000 |
Financial advantage | 110000 |
4. | |
Beta | |
Direct materials | 12 |
Direct labor | 15 |
Variable manufacturing overhead | 5 |
Variable selling expenses | 8 |
Variable cost per unit | 40 |
Alpha | |
Sales ( 5000 * 39 ) | 195000 |
(-) Variable cost ( 5000 * 40) | 200000 |
Financial disadvantage | (5000) |
5-a. | |
Alpha ( New order ) | |
Sales ( 10000 * 80 ) | 800000 |
(-) Variable cost ( 10000 * 69 ) | 690000 |
Contribution margin earned from new customer's order | 110000 |
Alpha ( Regular customer ) | |
Sales ( 5000 * 120 ) | 600000 |
Variable cost ( 5000 * 69 ) | 345000 |
Contribution margin lost on regular customers | 255000 |
Contribution margin earned from new customer's order | 110000 |
(-) Contribution margin lost on regular customers | 255000 |
Financial disadvantage | (145000) |
5-b. |
Based on your calculation in req. 5a should special order be accepted ? |
Answer : No |
6. | |
Beta | |
Variable cost ( 90000 * 40 ) | 3600000 |
Traceable fixed manufacturing overhead | 1800000 |
(-) Sales ( 90000 * 80 ) | 7200000 |
Financial disadvantage | (1800000) |
7. | |
Beta | |
Variable cost ( 40000 * 40 ) | 1600000 |
Traceable fixed manufacturing overhead | 1800000 |
(-) Sales ( 40000 * 80 ) | 3200000 |
Financial Advantage | 200000 |
I really need a help please. Thank you. I have posted twice. Required information The Foundational...
I really need a help please. Thank you. We were unable to transcribe this imageWe were unable to transcribe this imageWe were unable to transcribe this imageexpenses are unavoidable and have been allocated to products based on sales dollars. Foundational 11-3 3. Assume that Cane expects to produce and sell 80,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 10,000 additional Alphas for a price of $80 per...
I really need a help please. Thank you. Required information The Foundational 15 (LO11-2, LO11-3, LO11-4, LO11-5, LO11-6) 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...
Required information (The following information applies to the questions displayed below.) Cane Company manufactures two products called Alpha and Beta that sell for $150 and $110, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 108,000 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...
Required information (The following information applies to the questions displayed below.) Cane Company manufactures two products called Alpha and Beta that sell for $150 and $110, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 108,000 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...
Required Information (The following information applies to the questions displayed below.) Cane Company manufactures two products called Alpha and Beta that sell for $185 and $150, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 119,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha $ 40 Beta $ 24 28 20 Direct materials...
Required information [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $180 and $145, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 118,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Beta $ 24 27 Direct materials Direct labor Variable manufacturing...
Cane Company manufactures two products called Alpha and Beta that sell for $165 and $130, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 113,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Beta $ 24 Alpha $ 40 29 15 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling...
Required information [The following information applies to the questions displayed below.) Cane Company manufactures two products called Alpha and Beta that sell for $215 and $160, respectively. Each product uses only one type of raw material that costs $7 per pound. The company has the capacity to annually produce 125,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha $ 42 Beta $ 21 28 با Direct materials...
Required information (The following information applies to the questions displayed below.) Cane Company manufactures two products called Alpha and Beta that sell for $150 and $110, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 108,000 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...
Required information (The following information applies to the questions displayed below.) Cane Company manufactures two products called Alpha and Beta that sell for $150 and $110, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 108,000 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...