Required information What is the company's total common fixed expenses?

Total common fixed expenses Assume Cane expects to produce and sell $85,000$ Alphas during the current year. One of Cane's sales representatives found a new

customer willing to buy $15,000$ additional Alphas for a price of $$100$ per unit. What is the financial advantage $($disadvantage$)$ of

accepting the new customer's order? Assume Cane expects to produce and sell $95,000$ Betas during the current year. One of Cane's sales representatives found a new

customer willing to buy $5,000$ additional Betas for a price of $$44$ per unit. What is the financial advantage $($disadvantage$)$ of accepting

the new customer's order?Assume Cane expects to produce and sell $100,000$ Alphas during the current year. One of Cane's sales representatives found a new

customer willing to buy $15,000$ additional Alphas for a price of $$100$ per unit; however, pursuing this opportunity will decrease Alpha

sales to regular customers by $8,000$ 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?

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What is the financial advantage $($disadvantage$)$ of accepting the new customer's order?

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Cane Company manufactures two products called Alpha and Beta that sell for $$150$ and $$105,$ respectively. Each product

uses only one type of raw material that costs $$5$ per pound. The company has the capacity to annually produce $107,000$

units of each product. Its average cost per unit for each product at this level of activity is given below:

The company's traceable fixed manufacturing overhead is avoidable, whereas its common fixed expenses are

unavoidable and have been allocated to products based on sales dollars.

Use information above for questions below.

$2.$ What is the company$$s total common fixed expenses?

$3.$ Assume Cane expects to produce and sell $85,000$ Alphas during the current year. One of Cane's sales representatives found a new customer willing to buy $15,000$ additional Alphas for a price of $$100$ per unit. What is the financial advantage $($disadvantage$)$ of accepting the new customer's order?

$4.$Assume Cane expects to produce and sell $95,000$ Betas during the current year. One of Cane$$s sales representatives found a new customer willing to buy $5,000$ additional Betas for a price of $$44$ per unit. What is the financial advantage $($disadvantage$)$ of accepting the new customer's order?

$5.$ Assume Cane expects to produce and sell $100,000$ Alphas during the current year. One of Cane's sales representatives found a new customer willing to buy $15,000$ additional Alphas for a price of $$100$ per unit; however, pursuing this opportunity will decrease Alpha sales to regular customers by $8,000$ 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?

$6.$Assume Cane normally produces and sells $95,000$ Betas per year. What is the financial advantage $($disadvantage$)$ of discontinuing the Beta product line?