O Chec x 05 Ashley x Maes x E Everf x & Phote xGS Luxui x Unive x y Welc x 0 Ass

Question

O Chec x 05 Ashley x Maes x E Everf x & Phote xGS Luxui x Unive x y Welc x 0 Assiç x Q Micro x C X Max Welc x 2017 x 0 Chap x E C 0 ezto.mheducation.com/hm.tpx?_=0.3967218686745263_1511978064366 Check my work 12. value: 1.00 points Required information 12. What contribution margin per pound of raw material is eamed by Alpha and Beta? (Round your answers to 2 decimal places.) Alpha Beta Contribution margin per pound Required Information (The following information appNes to the questions displayed below.) References eBook & Resources Cane Company manufactures two products called Alpha and Beta that sell for $120 and $80, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 100,000 units of each product. Its unit costs for each product at this level of activity are given below: Worksheet Leaming Objective: 12-03 Prepare a make or buy analysis. Les cor Alpha Beta $ 12 Difficulty: 2 Medium Learning Objective: 12-04 Prepare an analysis showing whether a special order should be accepted. Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Learning Objective: 12-02 Prepare an analysis showing whether a product line or other business segment should be added or dropped. Leaming Objective: 12-05 Determine the most profitable use of a constrained resource. a ce a Total cost per unit $100 $ 68 Check my work

Explanation / Answer

Alpha Beta Selling price per unit (a) 120 80 Variable costs (b) : Direct materials per unit 30 12 Direct labour per unit 20 15 Variable manufacturing overhead per unit 7 5 Variable selling expenses per unit 12 8 Contribution margin per unit (c) = (a-b) 51 40 Alpha Beta Direct materials per unit (a) 30 12 Cost per pound (b) 6 6 Pounds of direct materials per unit (c) = (a/b) 5 2 Alpha Beta Contribution margin per unit (a) 51 40 Pounds of direct materials per unit (b) 5 2 Contribution margin per pound (c) = (a/b) 10.2 20

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