Cane Company manufactures two products called Alpha and Beta that sell for $$205$ and $$164,$ respectively. Each product uses only one type of raw material that costs $$8$ per pound. The company has the capacity to annually produce $127,000$ units of each product. Its unit costs for each product at this level of activity are given below:

Alpha

Beta

Direct materials

$$40$

$$24$

Direct labor

$37$

$30$

Variable manufacturing overhead

$24$

$22$

Traceable fixed manufacturing overhead

$32$

$35$

Variable selling expenses

$29$

$25$

Common fixed expenses

$32$

$27$

Total cost per unit

$$194$

$$163$

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

$5.$ Assume that Cane expects to produce and sell $112,000$ Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy $27,000$ additional Alphas for a price of $$148$ per unit. If Cane accepts the customer$$s offer, it will decrease Alpha sales to regular customers by $12,000$ units.Calculate the incremental net operating income if the order is accepted?

$8.$ Assume that Cane normally produces and sells $77,000$ Betas and $97,000$ Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by $12,000$ units. If Cane discontinues the Beta product line, how much would profits increase or decrease?

$9.$ Assume that Cane expects to produce and sell $97,000$ Alphas during the current year. A supplier has offered to manufacture and deliver $97,000$ Alphas to Cane for a price of $$148$ per unit. If Cane buys $97,000$ units from the supplier instead of making those units, how much will profits increase or decrease?

$10.$Assume that Cane expects to produce and sell $72,000$ Alphas during the current year. A supplier has offered to manufacture and deliver $72,000$ Alphas to Cane for a price of $$148$ per unit. If Cane buys $72,000$ units from the supplier instead of making those units, how much will profits increase or decrease?

$11.$

How many pounds of raw material are needed to make one unit of Alpha and one unit of Beta?

$12.$ What contribution margin per pound of raw material is earned by each of the two products?

Note: Round your answers to $2$ decimal places.

$3.$ Assume Cane$$s customers would buy a maximum of $97,000$ units of Alpha and $77,000$ units of Beta. Also assume the raw material available for production is limited to $247,000$ pounds. How many units of each product should Cane produce to maximize its profits?

$14.$ Assume Cane$$s customers would buy a maximum of $97,000$ units of Alpha and $77,000$ units of Beta. Also assume the raw material available for production is limited to $247,000$ pounds. What is the total contribution margin Cane Company will earn?

$15.$ Assume Cane$$s customers would buy a maximum of $97,000$ units of Alpha and $77,000$ units of Beta. Also assume the company$$s raw material available for production is limited to $247,000$ pounds. If Cane uses its $247,000$ pounds of raw materials, up to how much should it be willing to pay per pound for additional raw materials?

Note: Round your answer to $2$ decimal places.