5. Assume that Cane expects to produce and sell 111,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 26,000 additional Alphas for a price of $144 per unit; however pursuing this opportunity will decrease Alpha sales to regular customers by 12,000 units. What is the financial advantage (disadvantage) of accepting the new customers order?

11. How many pounds of raw material are needed to make one unit of each of the two products?

14. Assume that Canes customers would buy a maximum of 96,000 units of Alpha and 76,000 units of Beta. Also assume that the companys raw material available for production is limited to 246,000 pounds. What is the maximum contribution margin Cane Company can earn given the limited quantity of raw materials?

15. Assume that Canes customers would buy a maximum of 96,000 units of Alpha and 76,000 units of Beta. Also assume that the companys raw material available for production is limited to 246,000 pounds. If Cane uses its 246,000 pounds of raw materials, up to how much should it be willing to pay per pound for additional raw materials?

Required information The Foundational 15 [LO12-2, LO12-3, LO12-4, LO12-5, L012-6] [The following information applies to the questions displayed below.) Cane Company manufactures two products called Alpha and Beta that sell for $215 and $160, respectively. Each product uses only one type of raw material that costs $7 per pound. The company has the capacity to annually produce 125,000 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 42 35 23 31 28 31 Beta $ 21 28 21 34 24 26 $154 $190 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