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Cane Company manufactures two producis called Alpha and Beta that sell for $155 and $115, respectively. Each product uses only one type of raw material

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Cane Company manufactures two producis called Alpha and Beta that sell for $155 and $115, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 110,000 units of each product. Its average cost per unit for each product at this level of activity are given below: The company considers its traceable fixed manufactuting overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been ollocated to products based on sales dollars. Assume that Cane expects to produce and sell 87,000 Alphas during the current year. A supplier has offered to manufacture an feliver 87,000 Alphas to Cane for a price of $108 per unit. What is the financial advantage (disadvantage) of buying 87,000 units ff he supplier instead of making those units

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