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Cane Company manufactures two products called Alpha and Beta that sell for $ 1 5 5 and $ 1 1 5 , respectively. Each product

Cane Company manufactures two products called Alpha and Beta that sell for $155 and $115, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 110,000 units of each product. Its average cost per unit for each product at this level of activity is given below:
5. Assume Cane expects to produce and sell 102,000 Alphas during the current year. One of Cane's sales representatives found a new customer willing to buy 17,000 additional Alphas for a price of $108 per unit; however, pursuing this opportunity will decrease Alpha sales to regular customers by 9,000 units.
What is the financial advantage (disadvantage) of accepting the new customers order?

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