Cane Company manufactures two products called Alpha and Beta that sell for $$140$ and $$100,$ respectively. Each product uses only one type of raw material that costs $$8$ per pound. The company has the capacity to annually produce $106,000$ units of each product. Its average cost per unit for each product at this level of activity are given below:

Alpha Beta

Direct materials $ $32$ $ $16$

Direct labor $2419$

Variable manufacturing overhead $109$

Traceable fixed manufacturing overhead $2022$

Variable selling expenses $1612$

Common fixed expenses $1914$

Total cost per unit $ $121$ $ $92$

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.

$5.$ Assume that Cane expects to produce and sell $99,000$ Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy $14,000$ additional Alphas for a price of $$96$ per unit; however pursuing this opportunity will decrease Alpha sales to regular customers by $7,000$ 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?