Hi there!

I am working on my Chapter 12 Accounting Hw and I was wondering if you had some guidance on how to solve the first part of this problem.

[The following information applies to the questions displayed below.]

Cane Company manufactures two products called Alpha and Beta that sell for $130 and $90, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 102,000 units of each product. Its unit costs for each product at this level of activity are given below:

Alpha Beta

Direct materials$25$10

Direct labor2221

Variable manufacturing overhead177

Traceable fixed manufacturing overhead1820

Variable selling expenses1410

Common fixed expenses1712

Total cost per unit$113$80

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.

1.What is the total amount of traceable fixed manufacturing overhead for the Alpha product line and for the Beta product line?

2.What is the companys total amount of common fixed expenses?

3.Assume that Cane expects to produce and sell 82,000 Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 12,000 additional Alphas for a price of $88 per unit. If Cane accepts the customers offer, how much will its profits increase or decrease?rev: 07_09_2014_QC_51026, 07_11_2014_QC_51026, 08_14_2014_QC_52076, 08_18_2014_QC