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

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Required Information The Following Information Applies To The Questions Displayed Below Cane Company Manufactures Two 1 (73.96 KiB) Viewed 41 times

Required Information The Following Information Applies To The Questions Displayed Below Cane Company Manufactures Two 2 (62.85 KiB) Viewed 41 times

Required Information The Following Information Applies To The Questions Displayed Below Cane Company Manufactures Two 3 (66.08 KiB) Viewed 41 times

Required information [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $175 and $135, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 117,000 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 overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $ 40 30 18 26 23 26 $163 Beta $ 15 30 16 29 -19 21 $130 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. 10. Assume that Cane expects to produce and sell 61,000 Alphas during the current year. A supplier has offered to manufacture and deliver 61,000 Alphas to Cane for a price of $124 per unit. What is the financial advantage (disadvantage) of buying 61,000 units from the supplier instead of making those units?

Required information [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $175 and $135, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 117,000 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 overhead Variable selling expenses Common fixed expenses Total cost per unit Pounds of raw materials per unit Alpha $ 40 30 18 26 Alpha 23 26 $163 Beta Beta $15 30 16 29 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. -19 1. How many pounds of raw material are needed to make one unit of each of the two products? 21 $130

Required information [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $175 and $135, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 117,000 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 overhead Variable selling expenses Common fixed expenses Total cost per unit Contribution margin per pound Alpha $ 40 30 18 26 23 26 $163 Alpha Beta $15 Beta 30 16 29 -19 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. SIN 21 $130 What contribution margin per pound of raw material is earned by each of the two products? (Round your answers to 2 decimal places.)