Required information The Foundational 15 [LO11-2, L011-3, L011-4, 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 $215 and 5160, respectively. Each product uses only one type of raw material that costs $7 per pound. The company has the capacity to annually produce 125,000 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 manutacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Conton fixed expenses Total cost per unit Alpha $ 42 35 23 31 28 31 $190 Beta $ 21 28 21 34 24 26 $154 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 111.000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 26,000 additional Alphas for a price of $144 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? Complete this question by entering your answers in the tabs below. Red SA Req 5B What is the financial advantage (disadvantage) of accepting the new customer's order? Financial (disadvantage) $ 1,082,000 6. Assume that Cane normally produces and sells 106,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line? 11. How many pounds of raw material are needed to make one unit of each of the two products? Alpha Beta Pounds of raw materials per unit 12. What contribution margin per pound of raw material is earned by each of the two products? (Round your answers to 2 decimal places.) Alpha Beta Contribution margin per pound 14. Assume that Cane's customers would buy a maximum of 96.000 units of Alpha and 76,000 units of Beta. Also assume that the raw material available for production is limited to 246,000 pounds. What total contribution margin will it earn? Total contribution margin