1-Assume that Cane expects to produce and sell 91,000 Betas during the current year. One of Canes sales representatives has found a new customer who is willing to buy 6,000 additional Betas for a price of $40 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order?

2-Assume that Cane normally produces and sells 91,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line?

3-Assume that Cane expects to produce and sell 81,000 Alphas during the current year. A supplier has offered to manufacture and deliver 81,000 Alphas to Cane for a price of $84 per unit. What is the financial advantage (disadvantage) of buying 81,000 units from the supplier instead of making those units?

11-How many pounds of raw material are needed to make one unit of each of the two products?

What contribution margin per pound of raw material is earned by each of the two products? 13. Assume that Canes customers would buy a maximum of 81,000 units of Alpha and 61,000 units of Beta. Also assume that the companys raw material available for production is limited to 161,000 pounds. How many units of each product should Cane produce to maximize its profits?

Required information The following information applies to the questions displayed below. Cane Company manufactures two products called Alpha and Beta that sell for $125 and $85, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 101,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta $12 20 6 $ 30 21 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit 13 16 $105 9 $77 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