Question

One of the primary purposes of calculating a total cost is to evaluate whether or not a company should produce a product. Mar
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Hi Jeremiah Wedgewood,

Thank you for asking our view to continue to produce imprinted candles. I am submitting my views are as follows :

a. Cost of each product : $4 to $4.20 due to sale price variation.

b. Profit on each product is $6 to $6.30 while selling price is $10 to $10.50.

I am strongly recommending you to continue your business due to high profitability and low cost of the production.

I hope the above suggestion helps to resolve your issue. if you need any further assistance and I will be glad to assist you

Thanking You

Add a comment
Know the answer?
Add Answer to:
One of the primary purposes of calculating a total cost is to evaluate whether or not...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Cane Company manufactures two products called alpha and beta that sell for $140 and $100, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the cap...

    Cane Company manufactures two products called alpha and beta that sell for $140 and $100, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 106,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha/Beta Direct materials $32/16 Direct Labor $24/19 Variable Manufacturing Overhead $10/9 Traceable fixed manufacturing overhead $20/22 Variable selling expenses $16/12 common...

  • 1. If a product can be sold for $2,000 per unit, the variable cost per unit...

    1. If a product can be sold for $2,000 per unit, the variable cost per unit is $650, and fixed costs are $2 million, how many units must be produced and sold before the firm can break even? 2. If an employee has a salary of $75,000 per year, benefits cost the company $7,200 per employee per year, and the employer's share of the Social Security tax is 7.65 percent, what is the direct cost per year for this employee?...

  • 1a.If a product can be sold for $2,000 per unit and the variable cost per unit...

    1a.If a product can be sold for $2,000 per unit and the variable cost per unit is $650, and fixed costs are $2 million, how many units must be produced and sold before the firm can break even? 1b. If an employee has a salary of $75,000 per year, benefits cost the company $7,200 per employee per year, and the employer’s share of the Social Security tax is 7.65 percent, what is the direct cost per year for this employee?...

  • Cane Company manufactures two products called alpha and beta that sell for $140 and $100, respectively....

    Cane Company manufactures two products called alpha and beta that sell for $140 and $100, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 106,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha/Beta Direct materials $32/16 Direct Labor $24/19 Variable Manufacturing Overhead $10/9 Traceable fixed manufacturing overhead $20/22 Variable selling expenses $16/12 common...

  • 5. Assume that Cane expects to produce and sell 111,000 Alphas during the current year. One...

    5. Assume that Cane expects to produce and sell 111,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 26,000 additional Alphas for a price of $144 per unit; however pursuing this opportunity will decrease Alpha sales to regular customers by 12,000 units. a. What is the financial advantage (disadvantage) of accepting the new customer’s order? b. Based on your calculations above should the special order be accepte 6....

  • Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105, respectively....

    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 unit costs for each product at this level of activity are given below:AlphaBeta  Direct materials$30$10  Direct labor2520  Variable manufacturing overhead1210  Traceable fixed manufacturing overhead2123  Variable selling expenses1713  Common fixed expenses2015  Total cost per unit$125$91The company considers its traceable fixed manufacturing overhead to be...

  • Required information [The following information applies to the questions displayed below.] Cane Company manufactures two products...

    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 $120 and $80, respectively....

    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...

  • Chapter 12 6. Assume that Cane normally produces and sells 90.000 Betas per year. What is...

    Chapter 12 6. Assume that Cane normally produces and sells 90.000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line? 7. Assume that Cane normally produces and sells 40.000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line? 8. Assume that Cane normally produces and sells 60.000 Betas and 80,000 Alphas per year. If Can discontinues the Beta product line, its sales representatives could increase sales of Alpha...

  • Week 5 Threaded Discussion Analyzing Cost Behavior Ink Shots, Inc., is a new business located in...

    Week 5 Threaded Discussion Analyzing Cost Behavior Ink Shots, Inc., is a new business located in upstate New York. It prints promotional flyers for local businesses and distributes them at public places or area events. The flyers are either placed on the windshield of cars in parking lots or distributed by hand to people. Ink Shots' owner, Dana Edwards, is facing a difficult decision. She could purchase a commercial printer and produce the flyers in house. However, the machinery, costing...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT