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Cane Company manufactures two products called Alpha and Beta that sell for $$120$ and $$80,$ respectively. Each product uses only one type of raw material that costs $$6$ per pound. The company has the capacity to annually produce $100,000$ units of each product. Its average cost per unit for each product at this level of activity are given below:

Alpha Beta

Direct materials $ $30$ $ $12$

Direct labor $2015$

Variable manufacturing overhead $75$

Traceable fixed manufacturing overhead $1618$

Variable selling expenses $128$

Common fixed expenses $1510$

Total cost per unit $ $100$ $ $68$

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.

$1)$ What is the total amount of traceable fixed manufacturing overhead

$2)$ What is the company$$s total amount of common fixed expenses?

$3)$ Assume that Cane expects to produce and sell $80,000$ Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy $10,000$ additional Alphas for a price of $$80$ per unit. What is the financial advantage $($disadvantage$)$ of accepting the new customer's order?

$4)$ Assume that Cane expects to produce and sell $90,000$ Betas during the current year. One of Cane$$s sales representatives has found a new customer who is willing to buy $5,000$ additional Betas for a price of $$39$ per unit. What is the financial advantage $($disadvantage$)$ of accepting the new customer's order?

$5)$ Assume that Cane expects to produce and sell $95,000$ Alphas during the current year. One of Cane$$s sales representatives has found a new customer who is willing to buy $10,000$ additional Alphas for a price of $$80$ per unit; however pursuing this opportunity will decrease Alpha sales to regular customers by $5,000$ units.

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

Based on your calculations above should the special order be accepted?

$6)$ Assume that Cane normally produces and sells $90,000$ Betas per year. What is the financiAssume that Cane normally produces and sells $40,000$ Betas per year. What is the financial advantage $($disadvantage$)$ of discontinuing the Beta product line?al advantage $($disadvantage$)$ of discontinuing the Beta product line?

$7)$ Assume that Cane normally produces and sells $40,000$ Betas per year. What is the financial advantage $($disadvantage$)$ of discontinuing the Beta product line?

$8)$ Assume that Cane normally produces and sells $60,000$ Betas and $80,000$ Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by $15,000$ units. What is the financial advantage $($disadvantage$)$ of discontinuing the Beta product line?

$9)$ Assume that Cane expects to produce and sell $80,000$ Alphas during the current year. A supplier has offered to manufacture and deliver $80,000$ Alphas to Cane for a price of $$80$ per unit. What is the financial advantage $($disadvantage$)$ of buying $80,000$ units from the supplier instead of making those units?

$10)$ Assume that Cane expects to produce and sell $50,000$ Alphas during the current year. A supplier has offered to manufacture and deliver $50,000$ Alphas to Cane for a price of $$80$ per unit. What is the financial advantage $($disadvantage$)$ of buying $50,000$ units from the supplier instead of making those units?