use the information on the second picture to answer questions 1-5

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 com- pany 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: Beta Direct materials... Direct labor. Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $ 30 20 7 16 12 15 $ 100 $ 12 15 5 18 8 10 00 00 $ 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. Required: (Answer each question independently unless instructed otherwise.) 1. What is the total amount of traceable fixed manufacturing overhead for each of the two products? 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? Chapter 13. Quiz 1 Cane company produces two products called Alpha and Beta that sell for S108,00 and $72.00 respectively. Each product us only one type of raw material that costs 56 per pound The company has the capacity to annually produce 100,000 units of each product, Iis average cost per unit for cach product at this level of activity is given below: Direct material Direct labor Variable overhead Traceable fixed cost Variable selling expenses Commem fixed expenses The company considers its traceable fixed manufacturing overhead to be avoidable, whereas ita common fixed expenses are unavoidable and have been allocated to products based on sales dollars Beta 12 14 Alpha 30 18 & 10 10 12 12 10 8 REQUIRED: Use the information given above to answer questions through 5 on page 599