Question: Crane Company manufactures two products called Gamma and Lambda that sell for $165 and $130, respectively. The company has the capacity to annually produce 150,00

 Crane Company manufactures two products called Gamma and Lambda that sell

Crane Company manufactures two products called Gamma and Lambda that sell for $165 and $130, respectively. The company has the capacity to annually produce 150,00 units of each product. unit costs for each product at this level of activity are given below: 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. Suppose that Crane normally produces and sells 83,000 Gammas and 12, 400 Lambdas per year. If crane discontinues the Lambda product line, its sales representatives could increase sales of Gammas by 16.000 units. If crane discontinues the Lambda product line, how much would profits increase or decrease? A. Decrease by $ 101.200 B. Increase by $154, 800 C. Decrease by $ 867, 600 D. Decrease by $123, 600 E. Decrease by $ 2, 605, 200

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