PLEASE NOTE QUESTIONS 1-4 ARE ALREADY ANSWERED. WE NEED TO UTILIZE GIVEN INFORMATION AND QUESTIONS 1-4 TO ANSWER QUESTIONS 5-8.

PLEASE NOTE QUESTIONS 1-4 ARE ALREADY ANSWERED. WE NEED TO UTILIZE GIVEN INFORMATION AND QUESTIONS 1-4 TO ANSWER QUESTIONS 5-8.

Required information [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $240 and $162, respective ly. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 131,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha $35 Beta 15 Direct materials Direct labor 48 23 Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses 27 25 35 38 32 28 35 30 $212 $159 Total cost per unit The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars Required: 1. What is the total amount of traceable fixed manufacturing overhead for each of the two products? Alpha Beta Traceable fixed manufacturing overhead 4,585,000 4,978,000 2. What is the company's total amount of common fixed expenses? $ 8,515,000 Total common fixed expenses 3. Assume that Cane expects to produce and sell 100,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 30,000 additional Alphas for a price of $160 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? Financial advantage 540,000 S 4. Assume that Cane expects to produce and sell 110,000 Betas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 2,000 additional Betas for a price of $83 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? Financial (disadvantage) $ 16,000 5. Assume that Cane expects to produce and sell 115,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 30,000 additional Alphas for a price of $160 per unit; however pursuing this opportunity will decrease Alpha sales to regular customers by 14,000 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. Req 5A Req 5B What is the financial advantage (disadvantage) of accepting the new customer's order? Req 5B Req 5A 6. Assume that Cane normally produces and sells 110,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line? 7. Assume that Cane normally produces and sells 60,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line? EA. 8. Assume that Cane normally produces and sells 80,000 Betas and 100,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 13,000 units. What is the financial advantage (disadvantage) of discontinuing the Beta product line