Cane Company manufactures two products called Alpha and Beta that sell for $$195$ and $$150,$ respectively. Each

product uses only one type of raw material that costs $$5$ per pound. The company has the capacity to annually

produce $123,000$ units of each product. Its average cost per unit for each product at this level of activity are given

below:

Direct materials

Direct labor

Variable manufacturing overhead

Traceable fixed manufacturing overhead

Variable selling expenses

Common fixed expenses

Total cost per unit

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.

Assume that Cane normally produces and sells $75,000$ Betas and $95,000$ Alphas per year. If Cane discontinues the Beta product

line, its sales representatives could increase sales of Alpha by $15,000$ units. What is the financial advantage $($disadvantage$)$ of

discontinuing the Beta product line?