3 Cane Company manufactures two products called Alpha and Beta that sell for $185 and $120, respectively. Each productuses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 112,000units of each product. Its average cost per unit for each product at this level of activity is given below:Direct materialsDirect laborVariable manufacturing overheadTraceable fixed manufacturing overheadVariable selling expensesCommon fixed expensesTotal cost per unitAlpha$ 302220242023$ 139Financial advantageBeta$ 10291326The company's traceable fixed manufacturing overhead is avoidable, whereas its common fixed expenses areunavoidable and have been allocated to products based on sales dollars.Answer is not complete.1618$ 11210. Assume Cane expects to produce and sell 58,000 Alphas during the current year. A supplier offered to manufacture and deliver58,000 Alphas to Cane for a price of $112 per unit. What is the financial advantage (disadvantage) of buying 58,000 units from thesupplier instead of making those units?

MAKE OR BUY DECISIONThe make-or-buy decision is choosing between manufacturing a product within a…

Cane Company manufactures two products called Alpha and Beta that sell for $185 and $120, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 112,000 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 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. 10. Assume Cane expects to produce and sell 58,000 Alphas during the current year. A supplier offered to manufacture and deliver 58,000 Alphas to Cane for a price of $112 per unit. What is the financial advantage (disadvantage) of buying 58,000 units from the supplier instead of making those units? Financial advantage Alpha Beta $ 30 $ 10 22 29 11 20 13 24 26 20 16 23 18. $ 139 $ 112 Answer is not complete. ✓

Cane Company manufactures two products called Alpha and Beta that sell for $185 and $120, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 112,000 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 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. 10. Assume Cane expects to produce and sell 58,000 Alphas during the current year. A supplier offered to manufacture and deliver 58,000 Alphas to Cane for a price of $112 per unit. What is the financial advantage (disadvantage) of buying 58,000 units from the supplier instead of making those units? Financial advantage Alpha Beta $ 30 $ 10 22 29 11 20 13 24 26 20 16 23 18. $ 139 $ 112 Answer is not complete. ✓

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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