Required information The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $170 and $130, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 116,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Beta Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Connon fixed expenses Total cost per unit Alpha $ 30 30 20 26 22 25 $153 25 15 28 18 20 $124 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? Total common food expenses 3. Assume that Cane expects to produce and sell 90,000 Alphas during the current year. One of Cane's sales representatives tos found a new customer who is willing to buy 20,000 additional Alphas for a price of $120 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? 4. Assume that Cane expects to produce and sell 100.000 Betas during the current yet One of Cane's sales representatives his found a new customer who is willing to buy 3.000 additional Betas for a price of $49 peront What is the financial advantage (disadvantage of accepting the new customers order? 5. Assume that Cane expects to produce and sell 105,000 Alphas during the current year, One of Cane's sales representatives has found a new customer who is willing to buy 20,000 additional Alphas for a price of $120 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 5A Reg 58 What is the financial advantage (disadvantage) of accepting the new customer's order? 5. Assume that Cane expects to produce and sell 105,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 20,000 additional Alphas for a price of $120 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. ReqSA Reg 58 Based on your calculations in a should the special order be accepted? Yos ONO 15. Assume that Canes customers would buy a maximum of 90000 units of Alpha and 70,000 units of Beta Also assume that the company row material available for production is limited to 221000 pounds. If Cane uses its 221000 pounds of raw materials, up to how much should be willing to pay per pound for additional raw materials (Round your answer to 2 decimal places
