Cane Company manufactures two products called Alpha and Beta that sell for $130 and $90, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 102,000 units of each product. Its unit costs for each product at this level of activity are given below:

	Alpha	Beta
Direct Materials	25	10
Direct Labor	22	21
Variable Manufacturing overhead	17	7
Traceable fixed manufacturing overhead	18	20
Variable selling expense	14	10
Common fixed expense	17	12
Total cost per unit	113	80

The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars.

What is the companys total amount of common fixed expenses?

Assume that Cane expects to produce and sell 82,000 Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 12,000 additional Alphas for a price of $88 per unit. If Cane accepts the customers offer, how much will its profits increase or decrease? By how much?

Assume that Cane expects to produce and sell 97,000 Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 12,000 additional Alphas for a price of $88 per unit. If Cane accepts the customers offer, it will decrease Alpha sales to regular customers by 7,000 units.

calculate the incremental net operating income if the order is accepted

Assume that Cane normally produces and sells 92,000 Betas per year. If Cane discontinues the Beta product line, how much will profit increase or decrease? By how much?

Assume that Cane expects to produce and sell 82,000 Alphas during the current year. A supplier has offered to manufacture and deliver 82,000 Alphas to Cane for a price of $88 per unit. If Cane buys 82,000 units from the supplier instead of making those units, how much will profits increase or decrease?