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105 Required information [The following information applies to the questions displayed below! Cane Company manufactures two products called Alpha and Beta that sell for $205

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105 Required information [The following information applies to the questions displayed below! Cane Company manufactures two products called Alpha and Beta that sell for $205 and $164, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 127000 units of each product. Its average cost per unit for each product at this level of activity are given below Aloha beta Direct materials $49 * 24 Direct labor 37 30 Variable manufacturing overhead 24 22 Traceable fixed manufacturing overhead 32 35 Variable selling expenses 20 25 Como Fixed expenses 32 27 Total cost per unit $194 1163 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 5. Assume that Cane expects to produce and sell 112.000 Alphas during the current year One of Cane's sales representatives has found a new customer who is willing to buy 27000 additional Alphas for a price of $148 per unit; however pursuing this opportunity will decrease Alpha sales to regular customers by 12.000 units a What is the financial advantage (disadvantage) of accepting the new customer's order? nii calculations above should the special order be accepted? 5. Assume that Cane expects to produce and sell 112,000 Alphas during the current year One of Cane's sales representatives has found a new customer who is willing to buy 27,000 additional Alphas for a price of $148 per unit; however pursuing this opportunity will decrease Alpha sales to regular customers by 12,000 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? Complete this question by entering your answers in the tabs below. Reg 5A Reg SB What is the financial advantage (disadvantage) of accepting the new customer's order? Reg 5B > 5. Assume that Cane expects to produce and sell 112,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 27,000 additional Alphas for a price of $148 per unit, however pursuing this opportunity will decrease Alpha sales to regular customers by 12.000 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? 0.40 Complete this question by entering your answers in the tabs below. Reg 5 Rda se Based on your calculations in 5a should the special order be accepted? Yes ONO

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