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Required: 1. What is the total traceable fixed manufacturing overhead for each of the two products? 8. Assume Cane normally produces and sells 61,000 Betas and 81,000 Alphas per year. If Cane discontinues the Beta product line, its saies representatives could increase sales of Alpha by 16,000 units. What is the financial advantage (disadvantage) of discontinuing the Beta product line? 5. Assume Cane expects to produce and sell 96,000 Alphas during the current year. One of Cane's sales representatives found a new customer willing to buy 11,000 additional Alphas for a price of $84 per unit; however, pursuing this opportunity will decrease Alpha soles to regutar customers by 6,000 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? Complete this question by entering your answers in the tabs below. What is the financial advantage (disadvantage) of accepting the new customer's order? 7. Assume Cane normally produces and sells 41,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line? 2. What is the company's total common fixed expenses? 3. Assume Cane expects to produce and sell 81,000 Alphas during the current year. One of Cane's sales representatives found a new customer wiling to buy 11,000 additional Alphas for a price of $84 per unit. What is the financial advantage (disadvantage) of accepting the now customer's order? Required information [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $125 and $85, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 101,000 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. 4. Assume Cane expects to produce and sell 91,000 Betas during the current yeat. One of Cane's sales representatives found a new customer willing to buy 6.000 additional Betas for a price of $40 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? 6. Assume Cane normally produces and sells 91,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line
