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Course H X M Mbox (1 X Petinsure ezto.mheducation.com/ext/map/index.html?_con_ conkexternal browser=08launchUrl=http#%2534:252PX252Fblackboard oftamiedux252Fultrax.257. [4 Chapter 7 Case Study @ Saved Help 8 Required Information [The following
Course H X M Mbox (1 X Petinsure ezto.mheducation.com/ext/map/index.html?_con_ conkexternal browser=08launchUrl=http#%2534:252PX252Fblackboard oftamiedux252Fultrax.257. [4 Chapter 7 Case Study @ Saved Help 8 Required Information [The following information applies to the questions displayed below. ] Part It of 15 Cane Company manufactures two products called Alpha and Beta that sell for $130 and $90, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 102,000 units of each product. Its average cost per unit for each product at this level of activity are given below, Alpha Direct materials $ 10 Direct labor 23 21 Variable manufacturing overhead Traceable fixed manufacturing overhead 20 Variable polling expenses 14 common fixed expanses 12 Total cost par unit $ 113 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common food expenses are unavoidable and have been allocated to products based on sales dollars. 8. Assume that Cane normally produces and sells 62,000 Betas and 82,000 Alphas per year. If Cone discontinues the Beta product line, its sales representatives could Increase sales of Alpha by 17,000 units. What is the financial advantage (disadvantage) of discontinuing the Beta product line
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