Cane Company manufactures two products called Alpha and Betathat sell for $140 and $100, respectively. Each product uses onlyone type of raw material that costs $8 per pound. The company hasthe capacity to annually produce 106,000 units of each product. Itsaverage cost per unit for each product at this level of activityare given below:

	Alpha				Beta
Direct materials		$	32			$	16
Directlabor			24				19
Variablemanufacturing overhead			10				9
Traceable fixed manufacturing overhead			20				22
Variableselling expenses			16				12
Commonfixed expenses			19				14
Totalcost per unit		$	121			$	92

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.

6a. Assume that Cane normally produces and sells 94,000 Betasper year. What is the financial advantage (disadvantage) ofdiscontinuing the Beta product line?

6b. Assume that Cane normally produces and sells 44,000 Betasper year. What is the financial advantage (disadvantage) ofdiscontinuing the Beta product line?

6c. Assume that Cane normally produces and sells 64,000 Betasand 84,000 Alphas per year. If Cane discontinues the Beta productline, its sales representatives could increase sales of Alpha by19,000 units. What is the financial advantage (disadvantage) ofdiscontinuing the Beta product line?

6d. Assume that Cane expects to produce and sell 84,000 Alphasduring the current year. A supplier has offered to manufacture anddeliver 84,000 Alphas to Cane for a price of $96 per unit. What isthe financial advantage (disadvantage) of buying 84,000 units fromthe supplier instead of making those units?

6e. Assume that Cane expects to produce and sell 54,000 Alphasduring the current year. A supplier has offered to manufacture anddeliver 54,000 Alphas to Cane for a price of $96 per unit. What isthe financial advantage (disadvantage) of buying 54,000 units fromthe supplier instead of making those units?