assume that cane normally produces 77,000 betas and 97,000 Alpha per year. if cane discontinues the beta product line number 8

ane 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. Directi materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fxed expenses Total cost per unit 24 $ 4 37 24 32 3227 $194 $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. Foundational 12-8 . Assume that Cane normally produces an sells 77000 Betas and 97000 Alphas per year if Cane discontinues the Beta product ine, its sales representatives could increase sales of Alpha by 12,000 units. What is the financial advantage (disadvantage) of discontinuing the Beta product line? Financial advantage