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{The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $190 and $155, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 122,000 units of each product. Its unit costs for each product at this level of activity are given below. Direct materials Direct labour Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Cost per unit Alpha $ 40 34 21 29 26 29 $179 Beta $ 24 28 19 32 22 24 $149 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 6. Assume that Cane normally produces and sells 104,000 Betas per year. If Cone discontinues the Beta product line, how much will profits increase or decrease? Profit (The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $190 and $155, respectively Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 122,000 units of each product. Its unit costs for each product at this level of activity are given below Direct materials Direct labour Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Cost per unit Alpha $.40 34 21 29 26 29 $179 Beta $ 24 28 19 32 22 24 $149 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, 7. Assume that Cane normally produces and sells 54,000 Betas per year. If Cane discontinues the Beta product line, how much will profits increase or decrease? Profit by The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $190 and $155, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 122,000 units of each product. Its unit costs for each product at this level of activity are given below Beta $ 24 28 Direct materials Direct labour Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Cost per unit Alpha $ 40 34 21 29 26 29 $179 NONN 24 $149 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. 8. Assume that Cane normally produces and sells 74.000 Betas and 94,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 14,000 units. If Cane discontinues the Beta product line, how much would profits increase or decrease? Profit Required information [The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $190 and $155, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 122,000 units of each product. Its unit costs for each product at this level of activity are given below Direct materials Direct labour Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Conmon fixed expenses Cost per unit Alpha $ 40 34 21 29 26 29 $179 leta $ 24 28 19 32 22 24 $149 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. 9. Assume that Cane expects to produce and sell 94,000 Alphas during the current year. A supplier has offered to manufacture and deliver 94,000 Alphas to Cane for a price of $136 per unit. If Cane buys 94,000 units from the supplier instead of making those units, how much will profits increase or decrease? Profit [The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $190 and $155, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 122,000 units of each product. Its unit costs for each product at this level of activity are given below: # Direct materials Direct labour Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Cost per unit Alpha $ 40 34 21 29 26 29 $179 Beta $ 24 28 19 32 22 24 $149 SANG 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. 10. Assume that Cane expects to produce and sell 69.000 Alphas during the current year A supplier has offered to manufacture and deliver 69,000 Alphas to Cane for a price of $136 per unit, If Cane buys 69,000 units from the supplier instead of making those units, how much will profits increase or decrease? Profit by

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