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Required information to [The following information applies to the questions displayed below.] ces Cane Company manufactures two products called Alpha and Beta that sell

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Required information to [The following information applies to the questions displayed below.] ces Cane Company manufactures two products called Alpha and Beta that sell for $175 and $135, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 117,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Direct materials Alpha $40 Beta $15 Direct labor 30 30 Variable manufacturing overhead 18 16 Traceable fixed manufacturing overhead. 26 29 23 19 Common fixed expenses 26 21 Variable selling expenses Total cost per unit $163 $ 130 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. 9. Assume that Cane expects to produce and sell 91,000 Alphas during the current year. A supplier has offered to manufacture and deliver 91,000 Alphas to Cane for a price of $124 per unit. What is the financial advantage (disadvantage) of buying 91,000 units from the supplier instead of making those units? Financial (disadvantage) Financial advantage

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