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help. The Foundational 15 (Algo) [LO13-2, LO13-3, LO13-4, LO13-5, LO13-6] [The following informaton applies to the questions displayed below] Cane Company manufactures two producte called
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The Foundational 15 (Algo) [LO13-2, LO13-3, LO13-4, LO13-5, LO13-6] [The following informaton applies to the questions displayed below] Cane Company manufactures two producte called Alpha and Beta that sell for \$155 and \$115, respectvely Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 110,000 untis of each product its average cost per unit for each product at thili levef of activity are given below. The company considers its traceabie fixed manufacturing overhead to be avoldable, whereas its common fived expenses are unavoldable and have been allocated to products based on sales dollars. Foundetionel 13.5 (Algo) 5. Ascume that Cane expects to produce and sell 102,000 Alphes during the current year. One of Cane's sales representatives has found a new customer who In wiling to buy 17,000 additional Alphac for a price of $10 per unit however purfuing this opportunity will decresse Alphat sales to reguiar customers by 9000 units 3. What is the financisl advantage (disadvartage) of acceptng the new customer's order? b. Gased on your calculations above should the special order be accepted? Complete this question by entering your answers in the tabs below Step by Step Solution
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