Elegance inc. is a large cosmetics company that made an initial small investment in a start-up company, peace planet, which was developing an organic face lotion. this gave elegance controlling interests in the start-up company. however, peace planet soon began to have financial difficulties because of principal-agent problems. as a result, elegance did not invest in the next stage of development and pulled out of the company. this approach to strategic alliance is referred to as a:

Required information [the following information applies to the questions displayed below.] cane company manufactures two products called alpha and beta that sell for $155 and $115, respectively. each product uses only one type of raw material that costs $6 per pound. the company has the capacity to annually produce 110,000 units of each product. its average cost per unit for each product at this level of activity are given below: alpha beta direct materials $ 24 $ 12 direct labor 23 26 variable manufacturing overhead 22 12 traceable fixed manufacturing overhead 23 25 variable selling expenses 19 15 common fixed expenses 22 17 total cost per unit $ 133 $ 107 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. assume that cane expects to produce and sell 87,000 alphas during the current year. one of cane's sales representatives has found a new customer that is willing to buy 17,000 additional alphas for a price of $108 per unit. if cane accepts the customer’s offer, how much will its profits increase or decrease?