Required information

The Foundational $15($Algo$)[$L$013-2,$ L$013-3,$ L$013-4,$ L$013-5,$ L$013-6]$

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

Cane Company manufactures two products called Alpha and Beta that sell for $$190$ and $$155,$ respectively. Each product

uses only one type of raw material that costs $$8$ per pound. The company has the capacity to annually produce $122,000$

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.

Foundational $13-6($Algo$)$

Assume Cane normally produces and sells $104,000$ Betas per year. What is the financial advantage $($disadvantage$)$ of discontinuing

the Beta product line?