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Homework answers / question archive / Cane Company manufactures two products called Alpha and Beta that sell for $140 and $100, respectively_ Each product uses only one type of raw material that costs $8 per pound_ The company has the capacity to annually produce 106,000 units of each product

Cane Company manufactures two products called Alpha and Beta that sell for $140 and $100, respectively_ Each product uses only one type of raw material that costs $8 per pound_ The company has the capacity to annually produce 106,000 units of each product

Management

Cane Company manufactures two products called Alpha and Beta that sell for $140 and $100, respectively_ Each product uses only one type of raw material that costs $8 per pound_ The company has the capacity to annually produce 106,000 units of each product. Its average cost per unit for each product at this level of activity are given below: 
AnitiagaltillalatiaAlpha ; -Beta Direct materials $ 32 $16 Direct labor 24 19 Variable manufacturing overhead 10 9 Traceable fixed manufacturing overhead 20 , 22 Variable selling expenses 16 12 Common fixed expenses 19 14 Total cost per unit $121 $92 
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_ 
15. Assume that Cane's customers would buy a maximum of 84.000 units of Alpha and 64,000 units of Beta. Also assume that the company's raw material available for production is limited to 166,000 pounds. If Cane uses its 166,000 pounds of raw materials, up t how much should it be willing to pay per pound for additional raw materials? (Round your answer to 2 decimal places.) 

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