[The following information applies to the questions displayed below.] Cane Company manufactures two products called Alph

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[The following information applies to the questionsdisplayed below.]
Cane Company manufactures two products called Alpha and Betathat sell for $185 and $120, respectively. Each product uses onlyone type of raw material that costs $5 per pound. The company hasthe capacity to annually produce 112,000 units of each product. Itsaverage cost per unit for each product at this level of activityare given below:
The company considers its traceable fixed manufacturing overheadto be avoidable, whereas its common fixed expenses are unavoidableand have been allocated to products based on sales dollars.
6. Assume that Cane normally produces and sells 98,000 Betas peryear. What is the financial advantage (disadvantage) ofdiscontinuing the Beta product line?
-Assume that Cane normally produces and sells 48,000 Betas peryear. What is the financial advantage (disadvantage) ofdiscontinuing the Beta product line?
- Assume that Cane normally produces and sells 68,000 Betasand 88,000 Alphas per year. If Cane discontinues the Beta productline, its sales representatives could increase sales of Alpha by12,000 units. What is the financial advantage (disadvantage) ofdiscontinuing the Beta product line?