10 - Part 8 of 14 0.3 points Skipped Required information Foundational (L012-2, LO12-3, L012-4, LO12-5, LO12-6] [The following information applies to the questions displayed below.) Cane Company manufactures two products called Alpha and Beta that sell for $125 and $85, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 101,000 units of each product. Its unit costs for each product at this level of activity are given below: Alpha Beta Direct materials $ 30 $ 12 Direct labor 21 20 Variable manufacturing overhead 8 6 Traceable fixed manufacturing 17 19 overhead Variable selling expenses 13 9 Common fixed expenses 16 11 eBook References Total cost per unit $105 $77 The romnany considers its traceable fixed manufacturing overhead to be avoidable, Saved Hwk - Differential Analysis i $105 $ 77 Total cost per unit 10 Part 8 of 14 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. 0.3 points Skipped Foundational 12-8 eBook References 8. Assume that Cane normally produces and sells 61,000 Betas and 81,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 16,000 units. If Cane discontinues the Beta product line, how much would profits increase or decrease? Profit by Foundational 12-9 9. Assume that Cane expects to produce and sell 81,000 Alphas during the current year. A supplier has offered to manufacture and deliver 81,000 Alphas to Cane for a price of $84 per unit. If Cane buys 81,000 units from the supplier instead of making those units, how much will profits increase or decrease? Profit by Foundational 12-10 10. Assume that Cane expects to produce and sell 51,000 Alphas during the current year. A supplier has offered to manufacture and deliver 51,000 Alphas to Cane for a price of $84 per unit. If Cane buys 51,000 units from the supplier instead of making those units, how much will profits increase or decrease? Profit by