Answer 6
Financial disadvantage | $ 1,899,000 |
Explanation
Amount | Calculation | |
Units produced | 99,000.00 | |
Loss of Sales | $ 12,870,000 | 99000*130 |
Savings in Cost | $ 7,920,000 | 99000*80 |
Savings in Fixed cost | $ 3,051,000 | |
Financial disadvantage | $ 1,899,000 |
Answer 7
Financial advantage | $ 601,000 |
Explanation
Amount | Calculation | |
Units produced | 49,000.00 | |
Loss of Sales | $ 6,370,000 | 49000*130 |
Savings in Cost | $ 3,920,000 | 49000*80 |
Savings in Fixed cost | $ 3,051,000 | |
Financial disadvantage | $ (601,000) |
Answer 9
Financial advantage | $ 1,846,000 |
Explanation
Amount | Calculation | |
Units produced | 89,000.00 | |
Purchase cost | $ 10,324,000 | 116*89000 |
Manufacturing cost | $ 9,345,000 | 105*89000 |
Fixed Cost | $ 2,825,000 | |
Financial advantage | $ 1,846,000 |
Answer 10
Financial advantage | $ 2,176,000 |
Explanation
Amount | Calculation | |
Units produced | 59,000.00 | |
Purchase cost | $ 6,844,000 | 116*59000 |
Manufacturing cost | $ 6,195,000 | 105*59000 |
Fixed Cost | $ 2,825,000 | |
Financial advantage | $ 2,176,000 |
Answer 11
Alpha | Beta | |
Pounds of raw material per unit | 5 | 3 |
In case of any doubt, please comment.
Cane Company manufactures two products called Alpha and Beta that sell for $165 and $130, respectively....
Cane Company manufactures two products called Alpha and Beta that sell for $170 and $130, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 116,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta Direct materials $ 30 $ 18 Direct labor 30 25 Variable manufacturing overhead 20 15 Traceable fixed manufacturing overhead...
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 Alpha $ 40 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses...
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: Alpha $ 40 Beta $ 24 25 14 15 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable...
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 Alpha $ 40 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses...
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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: AlphaBeta Direct materials $30 $12 Direct labor 20 15 Variable manufacturing overhead 7 5 Traceable fixed manufacturing overhead 16 18 Variable selling expenses 12 8 Common fixed expenses 15 10 Total cost...
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...
Cane Company manufactures two products called Alpha and Beta that sell for $ 150 and $ 105, respectively. Each product uses only one type of raw material that costs $ 5 per pound. The company has the capacity to annually produce 107,000 units of each product. Its average cost per unit for each product at this level of activity are given below:The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and...
Cane Company manufactures two products called Alpha and Beta that sell for $135 and $95, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 105,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta Direct materials $ 30 $ 18 Direct labor 23 16 Variable manufacturing overhead 10 8 Traceable fixed manufacturing overhead...