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ter 11 Practice Help Cane Company manufactures two products called Alpha and Beta that sell for $195 and $150, respectively. Each product uses only one

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ter 11 Practice Help Cane Company manufactures two products called Alpha and Beta that sell for $195 and $150, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 123,000 hduct lis average cost per unit tor each ptis livel of acthvty are gwen below 8 of 15 Alpha Beta $40 $15 28 20 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit 34 ook 38 27 38 $183 23 25 $144 ences 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. 8 Assume that Cane normally produces and sells 75,000 Betas and 95,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 15.000 units. What is the financial advantage (disadvantage) of discontinuing the Beta product line? inancial advantag Prev 8 9 1015 of 15 Score answer> e here to search

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