[The following information applies to the questions displayed below.]

Cane Company manufactures two products called Alpha and Beta that sell for $185 and $150, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 119,000 units of each product. Its unit costs for each product at this level of activity are given below:

	Alpha				Beta
Direct materials		$	40			$	24
Direct labor			33				28
Variable manufacturing overhead			20				18
Traceable fixed manufacturing overhead			28				31
Variable selling expenses			25				21
Common fixed expenses			28				23
Total cost per unit		$	174			$	145

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.

1.

What is the total amount of traceable fixed manufacturing overhead for the Alpha product line and for the Beta product line? Traceable fixed manufacturing overhead? Alpha - Beta

2.

What is the companys total amount of common fixed expenses? Total common fixed expenses?

3.

Assume that Cane expects to produce and sell 93,000 Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 23,000 additional Alphas for a price of $132 per unit. If Cane accepts the customers offer, how much will its profits increase or decrease? Net operating income by?

4.

Assume that Cane expects to produce and sell 103,000 Betas during the current year. One of Canes sales representatives has found a new customer that is willing to buy 2,000 additional Betas for a price of $61 per unit. If Cane accepts the customers offer, how much will its profits increase or decrease? Net operating income by?