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Ch. 12 F156 8 Required information Part 3 of 15 The Foundational 15 [LO12-2, L012-3, LO12-4, LO12-5, LO12-6) following information applies to the questions displayed
Ch. 12 F156 8 Required information Part 3 of 15 The Foundational 15 [LO12-2, L012-3, LO12-4, LO12-5, LO12-6) following information applies to the questions displayed below 0.33 points Cane Company manufactures two products called Alpha and Beta that sell for $165 and $130, respectively Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 113,000 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 expense:s Common fixed expenses $ 40 29 15 25 21 24 $24 25 eBook 27 17 19 Print $154 $126 Total cost per unit References 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. Foundational 12-8 8. Assume that Cane normally produces and sells 69.000 Betas and 89.000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 13,000 units. What is the financial advantage (disadvantage) of discontinuing the Beta product line? Mc
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