Question
Cane company manufatures two fffproducts aclled Alpha and Beta that sells 130 an 90 Each productuct uses onky ine raw material that cost 5 per
Cane company manufatures two fffproducts aclled Alpha and Beta that sells 130 an 90 Each productuct uses onky ine raw material that cost 5 per pound The company has the capacity of each itsacitity to annually produce 102000 units of ezch product Direct materials 25 and 10 Direct labor 22 and 21 variable manufacturing overhead 17 and 7 tracable ied manufacturing overhead 18 and 20 varable selling expenses 14 and 10 common fixed expenses 17 and 12 Tatal cost per unit 113 80 Assumedthat cane normally produces and sells 92000 Beta per year what is the financial advantage disadvntage of discontinuniing the Beta product lie
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