7. Assume that Cane normally produces and sells 51,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line? 5. Assume that Cane expects to produce and sell 106,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 21,000 additional Alphas for a price of $124 per unit; however pursuing this opportunity will decrease Alpha sales to regular customers by 10,000 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. What is the financial advantage (disadvantage) of accepting the new customer's order? 15. Assume that Cane's customers would buy a maximum of 91,000 units of Alpha and 71,000 units of Beta. Also assume that the company's raw material avallable for production is limited to 225,000 pounds. If Cane uses its 225,000 pounds of raw materials, up to how much should it be willing to pay per pound for additional raw materials? (Round your onswer to 2 decimal ploces.) 14. Assume that Cane's customers would buy a maximum of 91,000 units of Alpha and 71,000 units of Beta. Also assume that the raw material avallable for production is limited to 225,000 pounds. What is the total contribution margin Cane Company will earn? 4. Assume that Cane expects to produce and sell 101,000 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 $59 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? Required information The Foundational 15 (Algo) [LO11-2, LO11-3, LO11-4, LO11-5, LO11-6] [The following information applies to the questions displayed beiow] Cane Company manufactures two products called Alpha and Be that sell for \$175 and \$135, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 117,000 units of each product. Its average cost per unit for each product at this level of activity are given below: The company considers its traceable fixed manufacturing overhead to be avoldable, whereas its common fixed expenses are unavoidable and have been aliocated to products based on sales dollars. Foundational 11-1 (Algo) Reauired: 6. Assume that Cane normally produces and sells 101,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line? 2. What is the company's total amount of common fixed expenses? 12. What contribution margin per pound of raw material is earned by each of the two products? (Round your answers to 2 decimal places.) 10. Assume that Cane expects to produce and sell 61,000 Alphas during the current year: A supplier has offered to manufacture and deliver 61,000 Alphas to Cane for a price of $124 per unit. What is the financial advantage (disadvantage) of buying 61,000 units from the suppller instead of making those units? 13. Assume that Cane's customers would buy a maximum of 91,000 units of Alpha and 71,000 units of Beta. Also assume that the raw material available for production is limited to 225,000 pounds. How many units of each product should Cane produce to maximize its profits? 3. Assume that Cane expects to produce and sell 91,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 21,000 additional Alphas for a price of $124 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? 8. Assume that Cane normally produces and sells 71,000 Betas and 91,000 Alphas per year. If Cane discontinues the 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? Required: 1. What is the total amount of traceable fixed manufacturing overhead for each of the two products? 11. How many pounds of raw material are needed to make one unit of each of the two prpducts