None Required information[The following information applies to the questions displayed below.]Abel Company manufactures two products called Deluxe and Regular that sell for $68 and$39, respectively. Each product uses only one type of raw material that costs $3 per kilogram.The company has the capacity to annually produce 54,000 units of each product. Its unitcosts for each product at this level of activity are given below:Direct materialsDirect labourVariable manufacturing overheadTraceable fixed manufacturing overheadVariable selling expensesCommon fixed expensesDeluxe$ 14Regular$ 695.004.003.00910547.007$ 48$35Cost per unitThe company considers its traceable fixed manufacturing overhead to be avoidable, whereasits common fixed expenses are deemed unavoidable and have been allocated to productsbased on sales dollars.8. Assume that Abel normally produces and sells 40,200 Regular units and 30,200 Deluxe units per year. If Abeldiscontinues the Regular product line, its sales representatives could increase sales of Deluxe by 7,300 units. IfAbel discontinues the Regular product line, how much would profits increase or decrease?Profitincreasesby

The entity may be producing more than one product, It may need to determine which product line to be…

[The following information applies to the questions displayed below.] Abel Company manufactures two products called Deluxe and Regular that sell for $68 and $39, respectively. Each product uses only one type of raw material that costs $3 per kilogram. The company has the capacity to annually produce 54,000 units of each product. Its unit costs for each product at this level of activity are given below: Direct materials Direct labour Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Cost per unit Deluxe Regular $ 14 $ 6 9 5.00 4.00 3.00 9 10 5 7.00 4 7 $ 48 $ 35 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars. Assume that Abel normally produces and sells 40,200 Regular units and 30,200 Deluxe units per year. continues the Regular product line, its sales representatives could increase sales of Deluxe by 7,300 u el discontinues the Regular product line, how much would profits increase or decrease? fit increases