Cane Company manufactures two products called Alpha and Beta that sell for $140 and $100, 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 unit costs for each product at this level of activity are given below: Direct materials Alpha $ 36 Beta $ 16 Direct labour 26 20 Variable manufacturing overhead 7 6 Traceable fixed manufacturing overhead 22 23 Variable selling expenses 18 7 Common fixed expenses 21 10 Total cost per unit $ 130 $82 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars. Required: Assume that Cane normally produces and sells 100,000 Betas per year. If Cane discontinues the Beta product line, how much will profits increase or decrease? (Input the amount as positive value.) Profil by