Cane Company manufactures two products called Alpha and Beta that sell for $$215$ and $$160,$ respectively. Each product uses only one type of raw material that costs $$7$ per pound. The company has the capacity to annually produce $125,000$ units of each product. Its average cost per unit for each product at this level of activity is given below:

Alpha Beta

Direct materials $ $42$ $ $21$

Direct labor $3528$

Variable manufacturing overhead $2321$

Traceable fixed manufacturing overhead $3134$

Variable selling expenses $2824$

Common fixed expenses $3126$

Total cost per unit $ $190$ $ $154$

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

$5.$ Assume Cane expects to produce and sell $111,000$ Alphas during the current year. One of Cane's sales representatives found a new customer willing to buy $26,000$ additional Alphas for a price of $$144$ per unit; however, pursuing this opportunity will decrease Alpha sales to regular customers by $12,000$ units.

What is the financial advantage $($disadvantage$)$ of accepting the new customer$$s order?

Based on your calculations above should the special order be accepted?