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Saved ! Required Information The Foundational 15 (L011-2, LO11-3, LO11-4, LO11-5, L011-6) (The following information applies to the questions displayed below.) Cane Company manufactures two

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Saved ! Required Information The Foundational 15 (L011-2, LO11-3, LO11-4, LO11-5, L011-6) (The following information applies to the questions displayed below.) Cane 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 average cost per unit for each product at this level of activity are given below Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Connon fixed expenses Totol cost per unit Alpha $ 30 20 7 16 12 15 $100 Beta $12 15 5 18 3 10 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 11-8 8. Assume that Cane normally produces and sells 60,000 Betas and 80,000 Alphas per year. If Cane discontinues the Beta product ne, its sales representatives could increase sales of Alpha by 15,000 units. What is the financial advantage disadvantage of discontinuing the Beta product line

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