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Please refer to the image since the information in the photo applies to the parts in the questions. thanks! will thumbs up. pt 5. Assume

Please refer to the image since the information in the photo applies to the parts in the questions. thanks! will thumbs up.

pt 5. Assume Cane expects to produce and sell 95,000 Alphas during the current year. One of Cane's sales representatives found a new customer willing to buy 10,000 additional Alphas for a price of $80 per unit; however, pursuing this opportunity will decrease Alpha sales to regular customers by 5,000 units.

  • What is the financial advantage (disadvantage) of accepting the new customer's order?
  • Based on your calculations above should the special order be accepted?

pt. 6. Assume Cane normally produces and sells 90,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line?

Pt. 7. Assume Cane normally produces and sells 40,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line?

Pt 8. Assume Cane normally produces and sells 60,000 Betas and 80,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 15,000 units. What is the financial advantage (disadvantage) of discontinuing

the Beta product line?

image text in transcribed
Cane Company manufactures two products called Alpha and Beta that sell for $120 and $80, respectively. Each product uses only one type of raw materlat that costs $6 per pound. The company has the capacity to annually produce 100,000 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, whoreas its common fixed expenses are unavoidable and have been allocated to products based on sales doltars

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