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6.

a. Assume that Cane normally produces and sells 92,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line?

b. Assume that Cane normally produces and sells 42,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line?

c. Assume that Cane normally produces and sells 62,000 Betas and 82,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 17,000 units. What is the financial advantage (disadvantage) of discontinuing the Beta product line?

Please Answer all parts clearly in a similar format as above so I can follow. Thanks!

Cane Company manufactures two products called Alpha and Beta that sell for $130 and $90, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 102.000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta $ 25 $ 10 Direct materials Direct labor 22 21 Variable manufacturing overhead 17 7 Traceable fixed manufacturing overhead 18 20 Variable selling expenses 14 10 Common fixed expenses 17 12 Total cost per unit $ 113 $ 80 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. 4. Assume that Cane expects to produce and sell 92,000 Betas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 2.000 additional Betas for a price of $41 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order? Req 5A Req SB What is the financial advantage (disadvantage) of accepting the new customer's order