Cane Company manufactures two products called Alpha and Beta that sell for $240 and $162, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 131,000 units of each product. Its average cost per unit for each product at this level of activity are given below:

	Alpha	Beta
Direct materials	$ 35	$ 15
Direct labor	48	23
Variable manufacturing overhead	27	25
Traceable fixed manufacturing overhead	35	38
Variable selling expenses	32	28
Common fixed expenses	35	30
Total cost per unit	$ 212	$ 159

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.

7. Assume that Cane normally produces and sells 60,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line?