Cane Company manufactures two products called Alpha and Beta that sell for $$210$ and $$172,$ respectively. Each product uses only one type of raw material that costs $$8$ per pound. The company has the capacity to annually produce $128,000$ units of each product. Its average cost per unit for each product at this level of activity are given below:

Alpha Beta

Direct materials $ $40$ $ $24$

Direct labor $3834$

Variable manufacturing overhead $2523$

Traceable fixed manufacturing overhead $3336$

Variable selling expenses $3026$

Common fixed expenses $3328$

Total cost per unit $ $199$ $ $171$

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 $98,000$ Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy $28,000$ additional Alphas for a price of $$152$ per unit. What is the financial advantage $($disadvantage$)$ of accepting the new customer's order?

$4.$ Assume that Cane expects to produce and sell $108,000$ Betas during the current year. One of Cane$$s sales representatives has found a new customer who is willing to buy $3,000$ additional Betas for a price of $$81$ per unit. What is the financial advantage $($disadvantage$)$ of accepting the new customer's order?

$5.$ Assume that Cane expects to produce and sell $113,000$ Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy $28,000$ additional Alphas for a price of $$152$ per unit; however pursuing this opportunity will decrease Alpha sales to regular customers by $13,000$ 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?

$6.$ Assume that Cane normally produces and sells $108,000$ Betas per year. What is the financial advantage $($disadvantage$)$ of discontinuing the Beta product line?

$7.$ Assume that Cane normally produces and sells $58,000$ Betas per year. What is the financial advantage $($disadvantage$)$ of discontinuing the Beta product line?

$8.$ Assume that Cane normally produces and sells $78,000$ Betas and $98,000$ Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by $11,000$ units. What is the financial advantage $($disadvantage$)$ of discontinuing the Beta product line?

$9.$ Assume that Cane expects to produce and sell $98,000$ Alphas during the current year. A supplier has offered to manufacture and deliver $98,000$ Alphas to Cane for a price of $$152$ per unit. What is the financial advantage $($disadvantage$)$ of buying $98,000$ units from the supplier instead of making those units?

$10.$ Assume that Cane expects to produce and sell $73,000$ Alphas during the current year. A supplier has offered to manufacture and deliver $73,000$ Alphas to Cane for a price of $$152$ per unit. What is the financial advantage $($disadvantage$)$ of buying $73,000$ units from the supplier instead of making those units?

$11.$ How many pounds of raw material are needed to make one unit of each of the two products?

$12.$ What contribution margin per pound of raw material is earned by each of the two products? $($Round your answers to $2$ decimal places.$)$

$13.$ Assume that Cane$$s customers would buy a maximum of $98,000$ units of Alpha and $78,000$ units of Beta. Also assume that the raw material available for production is limited to $248,000$ pounds. How many units of each product should Cane produce to maximize its profits?

$14.$ Assume that Cane$$s customers would buy a maximum of $98,000$ units of Alpha and $78,000$ units of Beta. Also assume that the raw material available for production is limited to $248,000$ pounds. What is the total contribution margin Cane Company will earn?

$15.$ Assume that Cane$$s customers would buy a maximum of $98,000$ units of Alpha and $78,000$ units of Beta. Also assume that the company$$s raw material available for production is limited to $248,000$ pounds. If Cane uses its $248,000$ pounds of raw materials, up to how much should it be willing to pay per pound for additional raw materials? $($Round your answer to $2$ decimal places.$)$