Required information The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $150 and $110, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 108,000 units of each product. Its average cost per unit for each product at this level of activity are given below Alpha ta s 15 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit $ 30 26 13 18 21 $130 24 14 16 $102 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. 2 What is the company's total amount of common fixed expenses? Required information The following information applies to the questions displayed below Cane Company manufactures two products called Alpha and Beta that sell for $150 and $110, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 108,000 units of each product. Its average cost per unit for each product at this level of activity are given below Alpha Beta s 15 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit s 30 26 13 2 4 14 16 130$102 18 21 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. 3. Assume that Cane expects to produce and sell 86,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 16,000 additional Alphas for a price of $104 per unit. What is the financial advantage (disadvantage) of accepting the new 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 $150 and $110, respectively Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 108,000 units of each product. Its average cost per unit for each product at this level of activity are given below Direct material3 Direct labor Variable manufacturing overhead Tracesble rixed manufacturing overhead Variable selling expenscs Common fixed expenses Total cost per unit s 30 26 13 s 15 24 18 21 16 $130 $102 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed exp are unavoidable and have been allocated to products based on sales dollars. 5. Assume that Cane expects to produce and sell 101,000 Alphas during the current year One of Cane's sales representatives has found a new customer who is willing to buy 16,000 additional Alphas for a price of $104 per unit, however pursuing this opportunity will decrease Alpha sales to regular customers by 9,000 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 SA Req SB What is the financial advantage (disadvantage) of accepting the new customer's order? Req 5B