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Cane Company manufactures two products Alpha and Beta that sell for $120 and $80 respectively. Each product uses only one type of raw material that

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Cane Company manufactures two products Alpha and Beta that sell for $120 and $80 respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 100,000 units of each product. The average cost per unit of each product at this level of capacity is given below: Answer the following independent questions: 1. Assume Cane expects to produce and sell 80,000 units of Alpha during the current year. One of Cane's sales representatives found a new customer willing to buy 10,000 additional units of Alpha for a price of $80 per unit. Accepting the new order will not affect the sales to regular customers. Calculate the financial advantage (or, disadvantage) accepting the special order. 2. Assume Cane expects to produce and sell 90.000 units of Beta during the current year. One of Cane's sales representatives found a new customer willini to buy 5.000 additional units of Beta for a price of $39 per unit. Calculate the financial advantage (or, disadvantage) accepting the special arder. 3. Assume Cane expects to produce and sell 90,000 units of Alpha during the current year. One of Cane's sales representatives found a new customer willing to buy 10.000 additional units of Npha for a price of 560 per unit. However. pursuing this opportunity wail decrease Npha soles to regula curtamers by 5,000 units Calculate the financial advantage for, disadvartase) accepting the special order. 4. Assume Cane normally produces and sells 60,000 units of Beta and 80,000 units of Alpha per year. If Cane discontinues the Beta product line, its sales of Alpha will increase by 15,000 units. What is the financial advantage (or, disadvantage) of discontinuing the Beta product line? Show your workings. 5. Assume Cane expects to produce and sell 50.000 units of Alpha during the current year. A supplier offered to manufacture and deliver 50,000 units of Alpha to Cane for a price of $80 per unit. What is the What is the financial advantage (or, disadvantage) of buying 50,000 units from the supplier instead of making those units in-house? Show your workings. 6. Assume Cane's customers would buy a maximum of 80,000 units of Alpha and $60,000 units of Beta. Also, assume that the raw materials available for production is limited to 160,000 pounds. How many units of each product Cane should produce to maximize its profits within those constraints? Show the calculations

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