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eers Hospitality... Imported From IE S New Tab WF Pcard sign on 5 Oracle PeopleSoft S.. O Taleo w Co ase Study Saved Required information

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eers Hospitality... Imported From IE S New Tab WF Pcard sign on 5 Oracle PeopleSoft S.. O Taleo w Co ase Study Saved Required information [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $140 and $100, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 106,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta Direct materials $ 32 $ 16 Direct labor 19 Variable manufacturing overhead 10 Traceable fixed manufacturing overhead 20 22 Variable selling expenses 16 Common fixed expenses Total cost per unit $121 $92 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. 7. Assume that Cane normally produces and sells 44,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line

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