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The Foundational $15($Algo$)[$LO$11-2,$ LO$11-3,$ LO$11-4,$ LO$11-5,$ LO$11-6]$

$[$The following information applies to the questions displayed below.$]$

Cane Company manufactures two products called Alpha and Beta that sell for $$175$ and $$135,$ respectively. Each product

uses only one type of raw material that costs $$5$ per pound. The company has the capacity to annually produce $117,000$

units of each product. Its average cost per unit for each product at this level of activity is given below:

The company's traceable fixed manufacturing overhead is avoidable, whereas its common fixed expenses are

unavoidable and have been allocated to products based on sales dollars.

$6.$ Assume Cane normally produces and sells $101,000$ Betas per year. What is the financial advantage $($disadvantage$)$ of discontinuing the Beta product line?

$7.$ Assume Cane normally produces and sells $51,000$ Betas per year. What is the financial advantage $($disadvantage$)$ of discontinuing the Beta product line?

$8.$ Assume Cane normally produces and sells $71,000$ Betas and $91,000$ Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by $11,000$ units. What is the financial advantage $($disadvantage$)$ of discontinuing the Beta product line?

$9.$ Assume Cane expects to produce and sell $91,000$ Alphas during the current year. A supplier offered to manufacture and deliver $91,000$ Alphas to Cane for a price of $$124$ per unit. What is the financial advantage $($disadvantage$)$ of buying $91,000$ units from the supplier instead of making those units?

$10.$ Assume Cane expects to produce and sell $61,000$ Alphas during the current year. A supplier offered to manufacture and deliver $61,000$ Alphas to Cane for a price of $$124$ per unit. What is the financial advantage $($disadvantage$)$ of buying $61,000$ units from the supplier instead of making those units?