The following information applies to the questions displayed below.] 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 units of each product. Its unit costs for each product at this level of activity are given below: Alpha Beta Direct materials $ 40 $ 15 Direct labour 34 28 Variable manufacturing overhead 22 20 Traceable fixed manufacturing overhead. Variable selling expenses 30 33 27 23 Common fixed expenses 30 25 Cost per unit $183 $144 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars. A 7. Assume that Cane normally produces and sells 55,000 Betas per year. If Cane discontinues the Beta product line, how much will profits increase or decrease? Profit increases by $ 539,000