How many units of each product should cane produce

Assignment Help Managerial Accounting
Reference no: EM133533024

Question: Cane Company manufactures two products called Alpha and Beta that sell for $130 and $90, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 102,000 units of each product. Its average cost per unit for each product at this level of activity are given below: AlphaBetaDirect materials$ 25$ 10Direct labor2221Variable manufacturing overhead177Traceable fixed manufacturing overhead1820Variable selling expenses1410Common fixed expenses1712Total cost per unit$ 113$ 80 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.13. Assume that Cane's customers would buy a maximum of 82,000 units of Alpha and 62,000 units of Beta. Also assume that the raw material available for production is limited to 162,000 pounds. How many units of each product should Cane produce to maximize its profits?

Reference no: EM133533024

Questions Cloud

What is the total cost of the garage conversion project : What government grants or financial support might be available to help fund the project, and how can these be accessed? And does that available regardless
Construction management principles - building failure : BLCN29001 Construction Technology, Central Queensland University - current and new products and services and their technical specific requirements to manage
Briefly summarize the major point you plan to cover in paper : In the Introduction of your paper: (i) State the purpose of your paper. (ii) Briefly summarize the major points you plan to cover in your paper.
What was the division sales revenue for the quarter : What was the division's sales revenue for the quarter? What was the division's net operating income for the quarter?
How many units of each product should cane produce : assume that the raw material available for production is limited to 162,000 pounds. How many units of each product should Cane produce to maximize its profits?
How do you create a worksheet to show results for drinks : How do you create a worksheet to show results for drinks, meals, games, and souvenir sales? Using estimates, explain how you would create the worksheet for
Are we obligated to pay our shareholders a dividend : should we retain cash in the company for future opportunities? How might this impact future growth? Are we obligated to pay our shareholders a dividend?
Identify five key strategies of prescriptive problem : Identify five key strategies of prescriptive problem solving. Analyze how each strategy is different from another.
How would you consult to change policy to protect the public : How would you consult to change policy to protect the public? Describe the ethical issues and the consequences. Are these interviewed persons believable?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Determine the average cost per salad

(a) Determine the average cost per salad at each of the following monthly volumes: 1,000; 10,000; 50,000; 100,000

  Why do overhead costs often shift from high-volume products

Why do overhead costs often shift from high-volume products to low-volum products when a company switches from a conventional costing method

  Determine the units of key chains required to be sold

The key chains sell for RM4.60 each. Assume that CK Sdn Bhd is targeting a profit of RM30,000. Determine the units of key chains required to be sold

  What is hailstorm company break-even point in units

Cost-Volume Profit - Analysis Hailstorm Company sells a single product for $22 per unit. What is Hailstorm Company break-even point in units

  Calculate the annual equivalent for project a

Calculate the Annual Equivalent (AE). Project A has an NPV of 100000. The project is financed by borrowing at 7%pa. The cost of capital for Project A is 0.1.

  What revenue to one division is expense to another division

Transfer prices do not matter because they don't impact operating income. After all, what is revenue to one division is an expense to another division.

  Determine the volume variance and price variance

Determine the budget variance (i.e., total revenue variance). Determine the price variance. Determine the volume variance.What was the total budgeted revenue?

  Calculate the weighted average contribution margin per unit

Assume the sales mix remains the same at all levels of sales. Calculate the weighted average contribution margin per unit

  Calculate accounting rate of return use annual net income

Ignoring income taxes, the annual net income amount used to calculate the accounting rate of return is? Depreciation method Straight-line

  Calculate the material handling rate

Calculate the material handling rate that would have been used by Eloise Smith's predecessor at East Coast Marine and calculate the revised material handling costs to be allocated on a per purchase order basis.

  What technology is required to prepare the food

How is this food prepared? What technology is required to prepare the food? Does everyone have access to it? Please explain. Who prepares the food?

  List the relevant costs of internally providing the service

Matrix human resources company, List the relevant costs of internally providing the service and externally purchasing them from the other organization.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd