subject
Business, 30.11.2019 01:31 spiritedawayoy6378

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 unit costs for each product at this level of activity are given below:

alpha beta
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 per unit $ 100 $ 68

the company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars.

required:

1- assume that cane normally produces and sells 90,000 betas per year. if cane discontinues the beta product line, how much will profits increase or decrease? (input the amount as positive value.)

2- assume that cane normally produces and sells 40,000 betas per year. if cane discontinues the beta product line, how much will profits increase or decrease? (input the amount as positive value.)

3- assume that cane normally produces and sells 60,000 betas and 80,000 alphas per year. if cane discontinues the beta product line, its sales representatives could increase sales of alpha by 15,000 units. if cane discontinues the beta product line, how much would profits increase or decrease? (input the amount as positive value.)

4- assume that cane expects to produce and sell 80,000 alphas during the current year. a supplier has
offered to manufacture and deliver 80,000 alphas to cane for a price of $80 per unit. if cane buys 80,000 units from the supplier instead of making those units, how much will profits increase or decrease? (input the amount as positive value.)

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 10:40
What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk
Answers: 1
question
Business, 22.06.2019 12:10
Lambert manufacturing has $100,000 to invest in either project a or project b. the following data are available on these projects (ignore income taxes.): project a project b cost of equipment needed now $100,000 $60,000 working capital investment needed now - $40,000 annual cash operating inflows $40,000 $35,000 salvage value of equipment in 6 years $10,000 - both projects will have a useful life of 6 years and the total cost approach to net present value analysis. at the end of 6 years, the working capital investment will be released for use elsewhere. lambert's required rate of return is 14%. the net present value of project b is:
Answers: 2
question
Business, 22.06.2019 17:50
The management of a supermarket wants to adopt a new promotional policy of giving a free gift to every customer who spends > a certain amount per visit at this supermarket. the expectation of the management is that after this promotional policy is advertised, the expenditures for all customers at this supermarket will be normally distributed with a mean of $95 and a standard deviation of $20. if the management wants to give free gifts to at most 10% of the customers, what should the amount be above which a customer would receive a free gift?
Answers: 1
question
Business, 22.06.2019 19:40
Which term describes an alternative to car buying where monthly payments are paid for a specific period of time, after which the vehicle is returned to the dealership or bought? a. car financing b. car maintenance c. car leasing d. car ownership
Answers: 3
You know the right answer?
Cane company manufactures two products called alpha and beta that sell for $120 and $80, respectivel...
Questions
Questions on the website: 13722360