SECOND QUESTION: Assume that Cane normally produces and sells 41,000 Betas per year. If Cane discontinues the Beta product line, how much will profits increase or decrease?

066 points 6. Assume that Cane normally produces and sells 91.000 Betas per year lif Cane discontinues the Beta product line, how much will profits increase or decrease? rofit decreases References eBook & Resources Learning objective: 10-03 Prepare a Learning ob Worksheet make or buy analysis. Difficulty: 2 Medium Learning objective: 10-04 Prepare an analysis showing whether a special order should be accepted. Required Information IThe following Information apples to the questions displayed below/ Cane Company manufactures two products called Alpha and Beta that sell for $125 and 85, respectively. Each product uses only one type of raw matenal that costs $6 per pound. The company has the capacity to annually produce 101.000 units of each product unit costs for each duct at this level ven bel Alpha Beta Direct materlals 30 12 Direct labor Variable manufacturing overhead Traceable fixed manufactunng overhead Variable selling expenses Common fixed expenses Total cost per unit $105 77 The company considers Its traceable fixed manufacturing overhead to be avoidabl whereas Its common fixed expenses are deemed unavoldable and have been allocated to products based on sales dollars