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O Question 26 2 pts The following data is used for all Crane company questions. (identical aside from the required) Crane Company manufactures two products
O Question 26 2 pts The following data is used for all "Crane company" questions. (identical aside from the required) Crane Company manufactures two products called Alpha and Beta that sell for $120 and $80, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 100,000 units of each product. Its unit costs for each product at this level of activity are given below: Alpha Beta Direct materials $30 $12 Direct labor 20 15 Variable manufacturing overhead 7 Traceable fixed manufacturing overhead 16 18 Variable selling expenses 12 Common fixed expenses 15 10 Total cost per unit $100 $68 All traceable FC are avoidable Required: Assume that Crane produces and sells 60,000 Betas and 80,000 Alphas per year. If Crane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 15.000 units. If Crane discontinues the Beta product line, how much will profits increase or decrease? Note: ROUND TO WHOLE NUMBER. Show a positive number (.8., 2500) for an increase and a nesative number (e.g., -2500) for a decrease. Do NOT use dollar sign or spaces in your
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