Requlred Information

The Foundational $15($Algo$)[$LO$13-2,$ LO$13-3,$ LO$13-4,$ LO$13-5,$ LO$13-6]$

$[$The following information applies to the questions displayed below$]$

Cane Company manufactures two products called Alpha and Beta that sell for $$240$ and $$162,$ respectively. Each product uses only one type of raw materlal that costs $$5$ per pound. The company has the capacity to annually produce $131,000$ units of each product. Its average cost per unit for each product at this level of activity are given below: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.

Foundational $13-6($Algo$)$

$6.$ Assume that Cane normally produces and sells $110,000$ Betas per year. What is the financial advantage $($disadvantage$)$ of discontinuing the Beta product line?