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Required information The following information applies to the questions displayed below. Cane Company manufactures two products called Alpha and Beta that sell for $135 and

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Required information The following information applies to the questions displayed below. Cane Company manufactures two products called Alpha and Beta that sell for $135 and $95, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 105,000 units of each product. Its average cost per unit for each product at this level of activity are given below Alpha Beta 30 $18 23 16 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit 10 19 15 21 13 $115 $87 18 overhead to be avoidable, whereas its common fixed expenses The company considers its traceable fixed manufacturing are unavoidable and have been allocated to products based on sales dollars 8. Assume that Cane normally produces and sells 63,000 Betas ond 83,000 Alphas per year. If Cone discontinues the Beta product line, its sales representatives could increase sales of Alpha by 18,000 units. What is the financial advantage (disadvantage) of discontinuing the Beta product line

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