Question: Hello please help me solve this answer, thanks in-advance. Cane Company manufactures two products called Alpha and Beta that sell for $165 and $130, respectively.
Hello please help me solve this answer, thanks in-advance.



Cane Company manufactures two products called Alpha and Beta that sell for $165 and $130, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 113,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta Direct materials $ 46 $ 24 Direct labor 29 25 Variable manufacturing 15 14 overhead Traceable fixed . 25 27 manufacturing overhead Variable selling 21 1? expenses Common fixed expenses 24 19 Total cost per unit $154 $126 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 11-5 5. Assume that Cane expects to produce and sell 104,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 19,000 additional Alphas for a price of $116 per unit; however pursuing this opportunity will decrease Alpha sales to regular customers by 10,000 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?Required information 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. Req 5A Req 5B What is the financial advantage (disadvantage) of accepting the new customer's order? Financial (disadvantage) $ (832,000)
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