Please do not give solution in image format thanku Required information[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 productuses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 100,000units of each product. Its average cost per unit for each product at this level of activity are given below:Direct materialsDirect laborVariable manufacturing overheadTraceable fixed manufacturing overheadVariable selling expensesCommon fixed expensesTotal cost per unitAlpha$ 30207161215$100Beta$1215518810$68The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expensesare unavoidable and have been allocated to products based on sales dollars. 5. Assume that Cane expects to produce and sell 95,000 Alphas during the current year. One of Cane's sales representatives hasfound a new customer who is willing to buy 10,000 additional Alphas for a price of $80 per unit; however pursuing this opportunity willdecrease 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.Req 5AWhat is the financial advantage (disadvantage) of accepting the new customer's order?Req 5B5. Assume that Cane expects to produce and sell 95,000 Alphas during the current year. One of Cane's sales representatives hasfound a new customer who is willing to buy 10,000 additional Alphas for a price of $80 per unit; however pursuing this opportunity willdecrease Alpha sales to regular customers by 5,000 units.Req 5Aa. 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?< Reg SAComplete this question by entering your answers in the tabs below.YesONOReq 58 >Req 58Based on your calculations in req. 5a should the special order be accepted?

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Uploaded: 2024-03-20T06:32:49.000Z
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Description: Please do not give solution in image format thanku Required information[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 pr

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played 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 overhead 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 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.