Cane Company manufactures two products called Alpha and Beta that sell for $$190$ and $$155,$ respectively. Each product

uses only one type of raw material that costs $$8$ per pound. The company has the capacity to annually produce $122,000$

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 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 $74,000$ Betas and $94,000$ Alphas per year. If Cane discontinues the Beta product

line, its sales representatives could increase sales of Alpha by $14,000$ units. What is the financial advantage $($disadvantage$)$ of

discontinuing the Beta product line?

Financial advantage