Cane Company manufactures two products called Alpha and Beta that sell for $$150$ and $$105,$ respectively. Each product uses only one type of raw material that costs $$5$ per pound. The company has the capacity to annually produce $107,000$ units of each product. Its average cost per unit for each product at this level of activity is given below:

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.

USE INFO ABOVE:

$2.$What is the company$$s total common fixed expenses?

$3.$Assume Cane expects to produce and sell $85,000$ Alphas during the current year. One of Cane's sales representatives found a new customer willing to buy $15,000$ additional Alphas for a price of $$100$ per unit. What is the financial advantage $($disadvantage$)$ of accepting the new customer's order?

$4.$Assume Cane expects to produce and sell $95,000$ Betas during the current year. One of Cane$$s sales representatives found a new customer willing to buy $5,000$ additional Betas for a price of $$44$ per unit. What is the financial advantage $($disadvantage$)$ of accepting the new customer's order?

$5.$Assume Cane expects to produce and sell $100,000$ Alphas during the current year. One of Cane's sales representatives found a new customer willing to buy $15,000$ additional Alphas for a price of $$100$ per unit; however, pursuing this opportunity will decrease Alpha sales to regular customers by $8,000$ 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?