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Cane Company manufactures two products called Alpha and Beta that sell for $120 and $80, respectively. Each product uses only one type of raw material

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Cane Company manufactures two products called Alpha and Beta that sell for $120 and $80, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 100,000 units of each product. Its average cost per unit for each product at this level of activity are given below Alpha $ 30 20 2 Direct waterials Direct lobor Variable manufacturing overhend Iraceable fixed manufacturing overhead Variable selling expenses Cowon fixed expenses Total cost Runt Beta $13 15 5 18 12 15 $100 10 560 The company considers its traceable fixed manufacturing overead to be avoidable whereas its common fixed expenses are unavoidable and have been allocated to products based on saies dollars 6. Assume that Cane normally produces and sells 90.000 Betas per year. What is the financial advantage disadvantage of discontinuing the Beta product line? Financial disadvantage h

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