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Cane Company manufactures two products called Alpha and Betathat sell for $185 and $150, respectively. Each product uses onlyone type of raw material that costs $8 per pound. The company hasthe capacity to annually produce 119,000 units of each product. Itsunit costs for each product at this level of activity are givenbelow:

	Alpha				Beta
Direct materials		$	40			$	24
Direct labor			33				28
Variablemanufacturing overhead			20				18
Traceable fixedmanufacturing overhead			28				31
Variable sellingexpenses			25				21
Common fixedexpenses			28				23
Total cost perunit		$	174			$	145

The company considers its traceable fixed manufacturing overheadto be avoidable, whereas its common fixed expenses are deemedunavoidable and have been allocated to products based on salesdollars 8. Assume that Cane normally produces and sells 73,000 Betas and93,000 Alphas per year. If Cane discontinues the Beta product line,its sales representatives could increase sales of Alpha by 13,000units. If Cane discontinues the Beta product line, how much wouldprofits increase or decrease? profit increase or decrease by? 9. Assume that Cane expects to produce and sell 93,000 Alphasduring the current year. A supplier has offered to manufacture anddeliver 93,000 Alphas to Cane for a price of $132 per unit. If Canebuys 93,000 units from the supplier instead of making those units,how much will profits increase or decrease? profit increase ordecrease by? 10. Assume that Cane expects to produce and sell 68,000 Alphasduring the current year. A supplier has offered to manufacture anddeliver 68,000 Alphas to Cane for a price of $132 per unit. If Canebuys 68,000 units from the supplier instead of making those units,how much will profits increase or decrease? profit increase ordecrease by?