(Solved): Cane Company manufactures two products called Alpha and Beta that sell for $170 and $130, respectiv ...

Cane Company manufactures two products called Alpha and Beta that sell for $\$170$ and $\$130$, respectively. Each product uses only one type of raw material that costs $\$6$ per pound. The company has the capacity to annually produce 116,000 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. 3. Assume that Cane normally produces and sells 70,000 Betas and 90,000 Alphas per year. If Cane discontinues the Beta product ine, its sales representatives could increase sales of Alpha by 14,000 units. What is the financial advantage (disadvantage) of Jiscontinuing the Beta product line?