Required information The Foundational 15 (Algo) (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 $205 and $164. respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 127,000 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 $ 40 37 24 32 29 32 5194 Beta 5 24 30 22 35 25 27 $163 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 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 97,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 27,000 additional Alphas for a price of $148 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? 4. Assume that Cane expects to produce and sell 107.000 Betas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 4,000 additional Betas for a price of $80 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? 5. Assume that Cane expects to produce and sell 112,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 27,000 additional Alphas for a price of $148 per unit; however pursuing this opportunity will decrease Alpha sales to regular customers by 12,000 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? 6. Assume that Cane normally produces and sells 107.000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line? 7. Assume that Cane normally produce and sells 37,000 Betas per year. What is the financial advantage (disadvantage of discontinuing the Beta product line? 8. Assume that Cane normally produces and sells 77,000 Betas and 97,000 Alphas per year If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 12,000 units. What is the financinl advantage (disadvantage of discontinuing the Beta product line? 9. Assume that Cane expects to produce and sell 97,000 Alphas during the current year. A supplier has offered to manufacture and deliver 97,000 Alphas to Cane for a price of $148 per unit. What is the financial advantage (disadvantage) of buying 97,000 units from the supplier instead of making those units? 10. Assume that Cane expects to produce and sell 72,000 Alphas during the current year. A supplier has offered to manufacture and deliver 72,000 Alphas to Cane for a price of $148 per unit. What is the financial advantage (disadvantage) of buying 72,000 units from the supplier instead of making those units? 11. How many pounds of raw material are needed to make one unit of each of the two products? 12. What cottribution margin per pound of raw material is earned by each of the two products? 13. Assume that Cane's customers would buy a maximum of 97,000 units of Alpha and 77,000 units of Beta. Also assume that the raw material available for production is limited to 247,000 pounds. How many units of each product should Cane produce to maximize its profits? 14. Assume that Cane's customers would buy a maximum of 97.000 units of Alpha and 77,000 units of Beta. Also assume that the raw material available for production is lumited to 247,000 pounds. What is the total contribution margin Cane Company will carn? 15. Assume that Cine's customers would buy a maximum of 97,000 units of Alpha and 77,000 units of Beta. Also assume that the company's raw material available for production is limited to 247,000 pounds. If Cane uses its 247,000 pounds of raw materins, up to how much should it be willing to pay per pound for additional raw material?