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1. What is the total amount of traceable fixed manufacturing overhead for each of the two products?2. What is the company's total amount of common

1. What is the total amount of traceable fixed manufacturing overhead for each of the two products?2. What is the company's total amount of common fixed expenses?3. Assume that Cane expects to produce and sell 87,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 17,000 additional Alphas for a price of $108 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order?4. Assume that Cane expects to produce and sell 97,000 Betas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 3,000 additional Betas for a price of $46 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order?5. Assume that Cane expects to produce and sell 102,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 17,000 additional Alphas for a price of $108 per unit; however pursuing this opportunity will decrease Alpha sales to regular customers by 9,000 units.a. What is the financial advantage (disadvantage) of accepting the new customer's order?b. Based on your calculations above should the special order be accepted?6. Assume that Cane normally produces and sells 97,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line?7. Assume that Cane normally produces and sells 47,000 Betas per year. What is the financial advaritage (disadvantage) of discontinuing the Beta product line?8. Assume that Cane normally produces and sells 67,000 Betas and 87,000 Alphas per year. If Cane discontinues tire Beta product line, its sales representatives could increase sales of Alpha by 11,000 units. What is the financial advantage (disadvantage) of discontinuing the Beta product line?

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Cane Company manufactures two products called Alpha and Beta that sell for $155 and $115, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 110,000 units of each product. Its average cost per unit for each product at this level of activity are given below: \" Alpha Beta Direct materials a $ 24 $ 12 Direct labor 23 26 Variable manufacturing overhead 22 12 Traceable fixed manufacturing overhead 23 25 Variable selling expenses 19 15 Common fixed expenses 22 17 Total cost per unit $ 133 $ 167 The company considers its traceable xed manufacturing overhead to be avoidable. whereas its common xed expenses are unavoidable and have been allocated to products based on sales dollars

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