Problem - The Company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars.
What is the total amount of traceable fixed manufacturing overhead for the Alpha product line and for the Beta product line?
What is the company's total amount of common fixed expenses?
Assume that Cane expects to produce and sell 94,000 Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 24,000 additional Alphas for a price of $136 per unit. If Cane accepts the customer's offer, how much will its profits increase or decrease?
Assume that Cane expects to produce and sell 104,000 Betas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 3,000 additional Betas for a price of $62 per unit. If Cane accepts the customer's offer, how much will its profits increase or decrease?
Assume that Cane expects to produce and sell 109,000 Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 24,000 additional Alphas for a price of $136 per unit. If Cane accepts the customer's offer, it will decrease Alpha sales to regular customers by 11,000 units.
Calculate the incremental net operating income if the order is accepted? (Loss amount should be indicated with a minus sign.)
Assume that Cane normally produces and sells 104,000 Betas per year. If Cane discontinues the Beta product line, how much will profits increase or decrease?
Assume that Cane normally produces and sells 54,000 Betas per year. If Cane discontinues the Beta product line, how much will profits increase or decrease?
Assume that Cane normally produces and sells 74,000 Betas and 94,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 14,000 units. If Cane discontinues the Beta product line, how much would profits increase or decrease?
Assume that Cane expects to produce and sell 94,000 Alphas during the current year. A supplier has offered to manufacture and deliver 94,000 Alphas to Cane for a price of $136 per unit. If Cane buys 94,000 units from the supplier instead of making those units, how much will profits increase or decrease?
Assume that Cane expects to produce and sell 69,000 Alphas during the current year. A supplier has offered to manufacture and deliver 69,000 Alphas to Cane for a price of $136 per unit. If Cane buys 69,000 units from the supplier instead of making those units, how much will profits increase or decrease?