Question

I really need a help please. Thank you.

Answer 1

Traceable Manufacturing Overhead Alpha Beta

16 18

For 100000 unit

       Alpha   Beta  
16   18  

Traceable fixed manufacturing oh       1600000   1800000   3400000

2) As the Common fixed expense have been allocated based on sales which is

80000 for Alpha and 90000 for Beta

Total Common Fixed expense would be 80000

Alpha   Beta Total
Sales   80000   90000  
15   10  
1200000   900000   2100000
3)If 10000 units of additional sales will be extra contribution of 7 per unit

Sales price   80

D material 30
D labour 20
V Oh 7
Traceable M Oh 16
  
Total    73

Contribution   7 per unit for additional 10000 Unit , it will be 10000*7 =70000 extra advantage

4. Per Unit of additional unit of beta is giving a negative contribution and   w7)ith 5000 unit the disadvantage will be

       Beta
Sales price       39

Dm 12
Dl 15
V Oh 5
Traceable M Oh       18
      
Total 50
      
Contribution       -11 per unit and for 5000 unit it will be 55000 negative contribution.

5)   alpha with price of   
Sales   120 80
      
Dm 30   30
Dl 20   20
V Oh 7   7
Traceable Manufacturing Oh   16   16
      
Total 73   73
      
Contribution 47   7

Contribution gain      
for selling 10000   7   70000
Contribution loss      
5000   47   -235000

Net disadvantage       -165000

6)

           Beta
Sp           80
          
Dm 12
Dl 15
V Oh 5
Traceable Mnfg Oh   18
Variable s exp 8
Relevant Total cost           58

90000 unit with per unit contribution           22
90000 unit with per unit contribution           22
contribution 90000   22   1980000
Common cost as shared   90000   10   900000
disadvantage will be 1080000

7.

if 40000 units of beta is produced

           Beta
Sp           80
          
Dm 12
Dl 15
V Oh 5
Traceable M Oh           18
Variable s exp 8
Relevant Total cost           58
          
90000 unit with per unit contribution           22
contribution 40000   22   880000
Common cost as shared   90000   10   900000
disadvantage will be -20000