Business
Business, 27.11.2019 20:31, almavaldez45

Cane company manufactures two products called alpha and beta that sell for $180 and $145, respectively. each product uses only one type of raw material that costs $6 per pound. the company has the capacity to annually produce 118,000 units of each product. 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. its unit costs for each product at this level of activity are given below: question 1. what is the company’s total amount of common fixed expenses? question 2. assume that cane expects to produce and sell 102,000 betas during the current year. one of cane’s sales representatives has found a new customer that is willing to buy 4,000 additional betas for a price of $60 per unit. if cane accepts the customer’s offer, how much will its profits increase or decrease?

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Cane company manufactures two products called alpha and beta that sell for $180 and $145, respective...

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