15 Required information The Foundational 15 (Algo) (LO11-2, L011-3, LO11-4, LO11-5, LO11-6) The following information applies to the questions displayed below.) Cane Company manufactures two products called Alpha and Beta that sell for $170 and $130, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 116,000 units of each product. Its average cost per unit for each product at this level of activity are given below. Direct materials Direct labor Variable manufacturing overhead Traceable Eixed manufacturing overhead Variable selling expenses Comon fixed expenses Total cost per unit Alpha $ 30 30 20 26 22 25 $ 153 Beta $ 18 25 15 28 18 20 $ 124 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. Foundational 11-6 (Algo) 6. Assume that Cane normally produces and sells 100,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line? The Foundational 15 (Algo) (LO11-2, LO11-3, LO11-4, LO11-5, LO11-6) (The following information applies to the questions displayed below.) Cane Company manufactures two products called Alpha and Beta that sell for $170 and $130, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 116,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $ 30 30 20 26 22 25 $ 153 Beta $ 18 25 15 28 18 20 $ 124 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. Foundational 11-5 (Algo) 5. Assume that Cane expects to produce and sell 105,000 Alphas during the current year. One of Cane's soles representatives has found a new customer who is willing to buy 20,000 additional Alphas for a price of $120 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? Pamathie IAR hantavina II antavian anure in the whole Foundational 11-5 (Algo) 5. Assume that Cane expects to produce and sell 105,000 Alphas during the current year. One of Cane's found a new customer who is willing to buy 20,000 additional Alphas for a price of $120 per unit, howeve 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? Complete this question by entering your answers in the tabs below. Req SA Req 5B What is the financial advantage (disadvantage) of accepting the new customer's order? Req 5B > ccepting 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. Req 5A Req 5B Based on your calculations in 5a should the special order be accepted? Yes No