Required information The Foundational 15 (L011-2, LO11-3, LO11-4, LO11-5, LO11-6) [The following information applies to the questions displayed below.) Cane Company manufactures two products called Alpha and Beta that sell for $205 and $164, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 127,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $ 40 37 24 32 29 32 $194 Beta $ 24 30 22 35 25 27 $163 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. Foundational 11-5 5. Assume that Cane expects to produce and sell 112,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 27,000 additional Alphas for a price of $148 per unit; however pursuing this opportunity will decrease Alpha sales to regular customers by 12,000 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? sook @ Complete this question by entering your answers in the tabs below. . Reg 5 Reg 58 What is the financial advantage (disadvantage) of accepting the new customer's order? Reg 50 Foundational 11-6 6. Assume that Cane normally produces and sells 107.000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line? Foundational 11-7 7. Assume that Cane normally produces and sells 57000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line? Foundational 11-8 8. Assume that Cane normally produces and sells 77.000 Betas and 97,000 Alphas per year. If Cane discontinues the Beta produc line. Its sales representatives could increase sales of Alpha by 12,000 units. What is the financial advantage (disadvantage) of discontinuing the Beta product line? es