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Cane Company manufactures two products called Alpha and Beta that sell for $125 and $85, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 101,000 units of each product. Its unit costs for each product at this level of activity are given below Direct materials Direct labour Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Cost per unit Alpha $ 30 21 8 12 13 16 $105 Beta $ 12 20 6 19 9 11 5.72 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars. 9. Assume that Cane expects to produce and sell 81000 Alphas during the current year. A supplier has offered to manufacture and deliver 81000 Alphas to Cane for a price of $84 per unit. If Cane buys 81000 units from the supplier instead of making those units how much will profits increase or decrease? Profit