Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. cane company manufactures two products called alph

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

70.2K

Verified Solution

Question

Accounting

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 average cost per unit for each product at this level of activity are given below:

Alpha Beta
Direct materials $ 30 $ 10
Direct labor 25 20
Variable manufacturing overhead 12 10
Traceable fixed manufacturing overhead 21 23
Variable selling expenses 17 13
Common fixed expenses 20 15
Total cost per unit $ 125 $ 91

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.

Foundational 11-6 (Algo)

6. Assume that Cane normally produces and sells 95,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Chemistry
1.2K views

1. Provide a scenerio in which a molecule with two strong bond dipoles can have no...

Accounting
1.2K views

You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door...

Physics
1.2K views

A body of mass M in the form of an inclined plane with a 450...

Basic Math
1.2K views

H The answer above is NOT correct What is the edge set S Answer Preview...

Statistics
1.2K views

3 Rodney is working on a project for his master s thesis involving the affect...

Accounting
1.2K views

Ivanhoe Corporation reported the following information (in thousands) at December 31,2024:20242023Long-term investments$190$100Land250250Buildings-300300Accumulated depreciation-buildings11075Equipment500370Accumulated...

Accounting
1.2K views

Periodic Inventory by Three Methods The units of an item available for sale during the...

Accounting
1.2K views

Which statement regarding investments in equity securities is incorrect? A. Investments in equity securities are...

Accounting
1.2K views

Indicate the Blueprinting services necessary for creatingvalued customer experiences and productive operations

Accounting
1.2K views

Whitney Corporation acquires Jessamine Corporation. Prior to the merger, Jessamine accumulated a $18,235,000NOL. After the...

Accounting
1.2K views

Q3. Journalize the following transactions

Accounting
1.2K views

please check and give answer As with all audit procedures, auditors must pay...