Required information [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $130 and $90, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 102,000 units of each product. Its unit costs for each product at this level of activity are given below. Direct materials Alpha $25 Beta 510 Direct labour Variable manufacturing overhead 22 21 37 7 Traceable fixed manufacturing overhead 18 20 Variable selling expenses 14 10 Common fixed expenses 17 12 Cost per unit 5113 5.80 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars. 3. Assume that Cane expects to produce and sell 82,000 Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 12.000 additional Alphas for a price of $88 per unit. If Cane accepts the customer's offer how much will its profits increase or decrease? Net operating income increases by $ 204.000