6. Assume that Cane normally produces and sells 107,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line?

9. Assume that Cane expects to produce and sell 97,000 Alphas during the current year. A supplier has offered to manufacture and deliver 97,000 Alphas to Cane for a price of $148 per unit. What is the financial advantage (disadvantage) of buying 97,000 units from the supplier instead of making those units?

13. Assume that Canes customers would buy a maximum of 97,000 units of Alpha and 77,000 units of Beta. Also assume that the companys raw material available for production is limited to 247,000 pounds. How many units of each product should Cane produce to maximize its profits?

Ch. 12: Foundational 15 1 Saved Help Save & Exit Check m Required information The Foundational 15 [LO12-2, LO12-3, LO12-4, LO12-5, LO12-6] The following information applies to the questions displayed below.] Part 4 of 10 Cane Company manufactures two products called Alpha and Beta that sell for $205 and $164, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 127,000 units of each product. Its average cost per unit for each product at this level of activity are given below: points eBook Print References Alpha Beta $ 24 30 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit $ 40 24 32 29 32 $194 35 25 27 $163 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