Cane Company manufactures two products called Alpha and Betathat sell for $130 and $90, respectively

Cane Company manufactures two products called Alpha and Betathat sell for $130 and $90, respectively. Each product uses onlyone type of raw material that costs $5 per pound. The company hasthe capacity to annually produce 102,000 units of each product. Itsaverage cost per unit for each product at this level of activityare given below: The company considers its traceable fixed manufacturing overheadto be avoidable, whereas its common fixed expenses are unavoidableand have been allocated to products based on sales dollars. 8. Assume that Cane normally produces and sells 62,000 Betas and82,000 Alphas per year. If Cane discontinues the Beta product line,its sales representatives could increase sales of Alpha by 17,000units. What is the financial advantage (disadvantage) ofdiscontinuing the Beta product line? 9. Assume that Cane expects to produce and sell 82,000 Alphasduring the current year. A supplier has offered to manufacture anddeliver 82,000 Alphas to Cane for a price of $88 per unit. What isthe financial advantage (disadvantage) of buying 82,000 units fromthe supplier instead of making those units? 10. Assume that Cane expects to produce and sell 52,000 Alphasduring the current year. A supplier has offered to manufacture anddeliver 52,000 Alphas to Cane for a price of $88 per unit. What isthe financial advantage (disadvantage) of buying 52,000 units fromthe supplier instead of making those units? 11. How many pounds of raw material are needed to make one unitof each of the two products? . . .

 
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