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Cane Company manufactures two products called Alpha and Beta that sell for $195 and $150. respectively. Each product uses only one type of raw material

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Cane Company manufactures two products called Alpha and Beta that sell for $195 and $150. respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 123,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $ 40 34 22 3e 27 30 $183 Beta $ 15 28 20 33 23 25 $144 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. 3. Assume that Cane expects to produce and sell 95.000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 25.000 additional Alphas for a price of $140 per unit. What is the financiadvantage (disadvantage) of accepting the new customer's order

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