The Foundational $15($Static$)[$LO$6-2,$ LO$6-3,$ LO$6-4,$ LO$6-5,$ LO$6-6]$Skip to question$[$The following information applies to the questions displayed below.$]$Cane Company manufactures two products called Alpha and Beta that sell for $$120$ and $$80,$ respectively. Each product uses only one type of raw material that costs $$6$ per pound. The company has the capacity to annually produce $100,000$ units of each product. Its average cost per unit for each product at this level of activity are given below: AlphaBetaDirect materials$ $30$$ $12$Direct labor$2015$Variable manufacturing overhead$75$Traceable fixed manufacturing overhead$1618$Variable selling expenses$128$Common fixed expenses$1510$Total cost per unit$ $100$$ $68$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.Foundational $6-8($Static$)8.$ Assume that Cane normally produces and sells $60,000$ Betas and $80,000$ Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by $15,000$ units. What is the financial advantage $($disadvantage$)$ of discontinuing the Beta product line?

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

Cane Company manufactures two products called Alpha and Beta that sell for $$120$ and $$80,$ respectively:Each product

uses only one type of raw material that costs $$6$ per pound. The company has the capacity to annually produce $100,000$

units of each product. Its average cost per unit 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 unavoidable and have been allocated to products based on sales dollars.

Foundational $6-8($Static$)$

Assume that Cane normally produces and sells $60,000$ Betas and $80,000$ Alphas per year. If Cane discontinues the Beta product

line, its sales representatives could increase sales of Alpha by $15,000$ units. What is the financial advantage $($disadvantage$)$ of

discontinuing the Beta product line?