Chec × Ashley Cezto.mheducation.com/hm.tpx?-=0.3967218686745263-1 5 1 1 97806436
ID: 2583101 • Letter: C
Question
Chec × Ashley Cezto.mheducation.com/hm.tpx?-=0.3967218686745263-1 5 1 1 978064366 WO 2. Required information 1.00 points 2. What is the company's total amount of common fixed expenses? l common fixed expenses Required Informati orn [The following information appWes to the questions displayed below 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: References eBook & Resources Worksheet Learning Objective: 12-03 Prepare a make or buy analysis. Alpha $ 30 20 Beta $ 12 15 Difficulty: 2 Medium Learning Objective: 12-04 Prepare an analysis showing whether a special order should be accepted Learning Objective: 12-02 Prepare an analysis showing whether a product line or other business segment should be added or dropped. Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Learning Objective: 12-05 Determine the most profitable use of a constrained 16 12 15 18 10 Total cost per unit $100 $ 68Explanation / Answer
Total common fixed expense = 100000*(15+10)= 2500000