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Required information [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $210 and
Required information [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $210 and $172, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 128,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha 40 Beta Direct materials Direct labor $ 24 38 34 Variable manufacturing overhead 25 23 Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses 33 36 30 26 33 28 Total cost per unit $199 $171 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 5B Req 5A What is the financial advantage (disadvantage) of accepting the new customer's order? Financial (disadvantage) S (203,000)
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