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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 $150

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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 $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 is given below. Alpha Beta Direct materials $30 $ 15 Direct labor 26 22 Variable manufacturing overhead 13 11 Traceable fixed manufacturing overhead 22 24 Variable selling expenses 18 14 Common fixed expenses 21 16 Total cost per unit $130 $102 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. 3. Assume Cane expects to produce and sell 86,000 Alphas during the current year. One of Cane's sales representatives found a new customer 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? Financial advantage

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