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Med EX 7 7/11 To Help eye HOFU The Foundational 15 (Algo) (LO13-2, LO13-3, LO13-4, LO13-5, LO13-6) The following information applies to the questions displayed

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Med EX 7 7/11 To Help eye HOFU The Foundational 15 (Algo) (LO13-2, LO13-3, LO13-4, LO13-5, LO13-6) The following information applies to the questions displayed below) Cane Company manufactures two products called Alpha and Beta that sell for $185 and $150 respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 119,000 units of each product. Its average cost per unit for each product at this level of activity are given below. art 2 of 6 1 int twarded Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha bet 5.40 $24 3328 20 18 32 25 21 78 29 5174 $ 145 Scored 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. PERE Foundational 13-6 (Algo) 6. Assume that Cane normally produces and sells 103.000 Betas per year. What is the financial advantage (disadvantage of discontinuing the Beta product line

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