The Foundational 15 (Static) [L013-2, LO13-3, L013-4, LO13-5, LO13-6) [The following information applies to the questions displayed below.) 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: Direct materials Direct labor Variable manufatturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Nipha $ 30 20 7 16 12 15 $ 100 Beta 5 12 15 5 18 8 10 $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. Foundational 13-1 (Static) Required: 1. What is the total amount of traceable fixed manufacturing overhead for each of the two products? Alpha Beta Traceable fixed manufacturing overhead The Foundational 15 (Static) (LO13-2, LO13-3, LO13-4, LO13-5, LO13-6) The following information applies to the questions displayed below.) 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: Direct materials Direct labor Variable manufacturing over head Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $ 30 20 7 16 12 15 $ 100 Beta $ 12 15 5 18 10 $ 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. Foundational 13-2 (Static) 2. What is the company's total amount of common fixed expenses? Total common food expenses Foundational 13-3 (Static) 3. Assume that Cane expects to produce and sell 80,000 Alphas during the current year. One of Cone'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? Foundational 13-4 (Static) 4. Assume that Cane expects to produce and sell 90,000 Betas during the current year. One of Cone's sales representatives has found a new customer who is willing to buy 5,000 additional Betes for a price of $39 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? 15 Foundational 13-5 (Static) 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. 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. ReqSA Reg 58 What is the financial advantage (disadvantage of accepting the new customer's order? RA Req 68 > Foundational 13-6 (Static) 6. Assume that Cane normally produces and sells 90,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line? Financial disadvantage) Print Foundational 13-7 (Static) 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