#1.Cane Company manufactures two products called Alpha and Beta that sell for $215 and $160, respectively. Each product uses only one type of raw material that costs $7 per pound. The company has the capacity to annually produce 125,000 units of each product. Its unit costs for each product at this level of activity are given below:
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.
Solution
contribution margin per pound of raw material is earned by Alpha = $ 14.50
contribution margin per pound of raw material is earned by Beta = $ 22
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Incoming and Outgoing Shipments in 3 STEPS Using Odoo 17
#1-Cane Company manufactures two products called Alpha and Beta that s.docx
1. #1.Cane Company manufactures two products called Alpha and Beta that sell for $215 and $160,
respectively. Each product uses only one type of raw material that costs $7 per pound. The
company has the capacity to annually produce 125,000 units of each product. Its unit costs for
each product at this level of activity are given below:
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.
#1.Cane Company manufactures two products called Alpha and Beta that sell for $215 and $160,
respectively. Each product uses only one type of raw material that costs $7 per pound. The
company has the capacity to annually produce 125,000 units of each product. Its unit costs for
each product at this level of activity are given below:
Solution
contribution margin per pound of raw material is earned by Alpha = $ 14.50
contribution margin per pound of raw material is earned by Beta = $ 22
What contribution margin per pound of raw material is earned by Alpha and Beta? (Round your
answers to 2 decimal places.)
