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The answer is NOT: Net (Disadvantage) $ 1,175,000 The correct answer is an Advantage. Required information The Foundational 15 (Algo) [LO13-2, LO13-3, LO13-4, LO13-5, LO13-6]

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The answer is NOT:

Net (Disadvantage) $1,175,000

The correct answer is an Advantage.

Required information The Foundational 15 (Algo) [LO13-2, LO13-3, LO13-4, LO13-5, LO13-6] [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $155 and $115, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 110,000 units of each product. Its average cost per unit for each product at this level of activity are given below: The company considers its traceble fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 7. Assume that Cane normally produces and sells 47,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line

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