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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. Direct materials Alpha Beta Direct labor 5 30 $12 Variable sanufacturing overhead 21 20 Traceable fixed manufacturing overhead Variable selling expenses 19 Common fixed expenses 16 11 Total cost per unit $105 577 6 17 13 9 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. Required: 1. What is the total amount of traceable fixed manufacturing overhead for each of the two products? Alpha Bota Traceable forced manufacturing overhead 2. What is the company's total amount of common fixed expenses? Total common foxed experts 3. Assume that Cane expects to produce and sell 81000 Alphas during the current yeat One of Cone's sales representatives has found a new customer who is willing to buy 11,000 additional Alphas for a price of $84 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? 4. Assume that Cane expects to produce and sell 91.000 Betas during the current year. One of Cane's 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? Bock 5. Assume that Cane expects to produce and sell 96,000 Alphes during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 11,000 additional Alphas for a price of $84 per unit, however pursuing this opportunity will decrease Alpha sales to regular customers by 6,000 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? rences Complete this question by entering your answers in the tabs below. Req Regs What is the financial advantage (disadvantage) of accepting the new customer's order? Bags > Complete this question by entering your answers in the tabs below. Rotarances Reg SA Rego Based on your calculations in Sa should the special order be accepted? Yes NO
