Cane company manufatures two fffproducts aclled Alpha and Beta that sells 130 an 90 Each productuct uses onky ine raw material that cost 5 per pound The company has the capacity of each itsacitity to annually produce 102000 units of ezch product Direct materials 25 and 10 Direct labor 22 and 21 variable manufacturing overhead 17 and 7 tracable ied manufacturing overhead 18 and 20 varable selling expenses 14 and 10 common fixed expenses 17 and 12 Tatal cost per unit 113 80 Assumedthat cane normally produces and sells 92000 Beta per year what is the financial advantage disadvntage of discontinuniing the Beta product lie

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Cane company manufatures two
fffproducts aclled Alpha and Beta that sells
130 an 90 Each productuct uses onky ine
raw material that cost 5 per pound The
company has the capacity of each itsacitity
to annually produce 102000 units of ezch
product Direct materials 25 and 10 Direct
labor 22 and 21 variable manufacturing
overhead 17 and 7 tracable ied
manufacturing overhead 18 and 20 varable
selling expenses 14 and 10 common fixed
expenses 17 and 12 Tatal cost per unit 113
80 Assumed that cane normally produces
and sells 92000 Beta per year what is the
financial advantage disadvntage of
discontinuniing the Beta product lie
Transcribed Image Text:Cane company manufatures two fffproducts aclled Alpha and Beta that sells 130 an 90 Each productuct uses onky ine raw material that cost 5 per pound The company has the capacity of each itsacitity to annually produce 102000 units of ezch product Direct materials 25 and 10 Direct labor 22 and 21 variable manufacturing overhead 17 and 7 tracable ied manufacturing overhead 18 and 20 varable selling expenses 14 and 10 common fixed expenses 17 and 12 Tatal cost per unit 113 80 Assumed that cane normally produces and sells 92000 Beta per year what is the financial advantage disadvntage of discontinuniing the Beta product lie
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