Please do not give solution in image format thanku Required information[The following information applies to the questions displayed below.]Cane Company manufactures two products called Alpha and Beta that sell for $240 and $162, respectively. Each productuses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 131,000units of each product. Its average cost per unit for each product at this level of activity are given below:Direct materialsDirect laborVariable manufacturing overheadTraceable fixed manufacturing overheadVariable selling expensesCommon fixed expensesTotal cost per unitAlphaReq 5A35 48 27 35 32Req 5B$ 35The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expensesare unavoidable and have been allocated to products based on sales dollars.Beta2b Assume that Cane expects to produce and sell 115,000 Alphas during the current year. One of Cane's sales representatives hasfound a new customer who is willing to buy 30,000 additional Alphas for a price of $160 per unit; however pursuing this opportunitywill decrease Alpha sales to regular customers by 14,000 units.Financial (disadvantage)Financial advantagea. What is the financial advantage (disadvantage) of accepting the new customer's order?b. Based on your calculations above should the special order be accepted?Complete this question by entering your answers in the tabs below.< Req 5A$ 15232538283035$ 212 $ 159What is the financial advantage (disadvantage) of accepting the new customer's order?Req 5B > Required information[The following information applies to the questions displayed below.]Cane Company manufactures two products called Alpha and Beta that sell for $240 and $162, respectively. Each productuses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 131,000units of each product. Its average cost per unit for each product at this level of activity are given below:Direct materialsDirect laborVariable manufacturing overheadTraceable fixed manufacturing overheadVariable selling expensesCommon fixed expensesTotal cost per unitAlpha$ 354827353235$ 212BetaFinancial (disadvantage)Financial advantage$152325382830$ 159The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expensesare unavoidable and have been allocated to products based on sales dollars.2a Assume that Cane expects to produce and sell 110,000 Betas during the current year. One of Cane's sales representatives hasfound a new customer who is willing to buy 2,000 additional Betas for a price of $83 per unit. What is the financial advantage(disadvantage) of accepting the new customer's order?

Income from special order is computed as = Revenue from special order - Relevant cost of special…

Cane Company manufactures two products called Alpha and Beta that sell for $240 and $162, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 131,000 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 Beta $ 35 $ 15 48 23 27 25 11 35 38 32 28 35 30 $ 212 $ 159 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. ssume that Cane expects to produce and sell 115,000 Alphas during the current year. One of Cane's sales representatives has d a new customer who is willing to buy 30,000 additional Alphas for a price of $160 per unit; however pursuing this opportunity decrease Alpha sales to regular customers by 14,000 units.

Cane Company manufactures two products called Alpha and Beta that sell for $240 and $162, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 131,000 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 Beta $ 35 $ 15 48 23 27 25 11 35 38 32 28 35 30 $ 212 $ 159 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. ssume that Cane expects to produce and sell 115,000 Alphas during the current year. One of Cane's sales representatives has d a new customer who is willing to buy 30,000 additional Alphas for a price of $160 per unit; however pursuing this opportunity decrease Alpha sales to regular customers by 14,000 units.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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! Required information [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $240 and $162, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 131,000 units of each product. Its average cost per unit for each product at this level of activity is given below: Direct materials. Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $ 35 Pounds of raw materials per unit 48 27 35 Alpha 32 35 $ 212 The company's traceable fixed manufacturing overhead is avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Betal $ 15 23 11. How many pounds of raw material are needed to make one unit of each of the two products? 25 38 28 30 $ 159 Beta