How much will net operating income decrease?

6 Part 4 of 14 0.3 points Required information Foundational (LO12-2, LO12-3, LO12-4, L012-5, LO12-6] [The following information applies to the questions displayed below.) Cane Company manufactures two products called Alpha and Beta that sell for $125 and $85, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 101,000 units of each product. Its unit costs for each product at this level of activity are given below: Alpha Beta Direct materials $ 30 $ 12 Direct labor 21 20 Variable manufacturing overhead 8 6 Traceable fixed manufacturing 17 19 overhead Variable selling expenses 13 9 Common fixed expenses 16 11 Total cost per unit $105 $77 The company considers its traceable fixed manufacturing overhead to be avoidable, 6 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. Part 4 of 14 0.3 points Foundational 12-4 4. Assume that Cane expects to produce and sell 91,000 Betas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 6,000 additional Betas for a price of $40 per unit. If Cane accepts the customer's offer, how much will its profits increase or decrease? Answer is complete but not entirely correct. Net operating income decreases by $ 222,000