Answer:
CANE COMPANY
a. total amount of traceable fixed manufacturing overhead
Alpha = $19*105,000 = $1,995,000
Beta = $21*105,000 = $2,205,000
b. Company's total amount of common fixed expenses =
Aplha = $18*105,000 = $1,890,000
Beta = $13* 105,000 = $1,365,000
Total = $3,255,000
c. Increase in profit as result of accepting the offer = additional contribution * additional unit sold
= $14*13,000
= $182,000
additional contribution =$92 - (30 + 23 + 10 + 15)
d. Decrease in profit = loss of contribution * unit sold
= -13 *4000
= ($52,000)
loss of contribution = 42 -( 18+ 16 +8+13)
Explanation:
