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[The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $240 and $162, respectively.

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[The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $240 and $162, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 131,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta Direct materials $ 35 $ 15 Direct labor co 23 Variable manufacturing overhead 25 Traceable fixed manufacturing overhead 35 38 Variable selling expenses 32 28 Common fixed expenses Total cost per unit $ 212 $ 159 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. 6. Assume that Cane normally produces and sells 110,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line

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