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Required information [The following information applies to the questions displayed below.) Cane Company manufactures two products called Alpha and Beta that sell for $175 and $135, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 117.000 units of each product. Its unit costs for each product at this level of activity are given below. Alpha Beta Direct materials $ 40 515 Direct labour 30 30 Variable manufacturing overhead 18 16 Traceable fixed manufacturing overhead 29 Variable selling expenses 23 19 Common fixed expenses 21 Cost per unit $163 $130 26 26 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. Required: 1. What is the total amount of traceable fixed manufacturing overhead for the Alpha product line and for the Beta product line? Alpha Beta Traceable fixed manufacturing overhead 2. What is the company's total amount of common fixed expenses? Total common fixed expenses 3. Assume that Cane expects to produce and sell 91,000 Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 21.000 additional Alphas for a price of $124 per unit. If Care accepts the customer's offer how much will its profits increase or decrease? Net operating income 4. Assume that Cane expects to produce and sell 101,000 Betas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 3,000 additional Betas for a price of $59 per unit. If Cane accepts the customer's citiet how much will its profits increase or decrease? Net operating income

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