7) Assume that Cane normally produces and sells 40,000 Betas pervyear. If Cane discontinues the Beta product line, how much will profits increase or decrease?

The walk thiugh uses a figure of 1,800,000 for traceable fixed manufacturing overhead. Shouldnt this figure be 720,000 since only 40,000 units are produced and sold?

Use the information below to answer questions 1 through 15 on pages 560 and 561 of the text. information is the same as in the text Alpha .$28.00 21.00 Beta $13.00 14.00 6.00 18.00 7.00 10.00 Direct labor Variable selling expenses 12.50 Common fixed expenses 15.00