1. Assume that Cane's customer would buy a maximum of 92,000 units of Alpha and 72,000 units of Beta. Also assume that the company's raw material available for production is limited to 300,000 pounds. What is the maximum contribution margin Cane Company can earn given the limited quantity of raw materials?

2. Assume that Cane's customers would buy a maximum of 92,000 units of Alpha and 72,000 units of Beta. Also assume that the company's raw material available for production is limited to 300,000 pounds. If Cane uses its 300,000 pounds of raw materials, up to how much should it be willing to pay per pound for additional raw materials?

3. What's the total amount of traceable fixed manufacturing overhead for each of the two products?

4. What's the company's total amount of common fixed expenses?

Cane Company manufactures two products called Alpha and Beta that sell for $180 and $145, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 118,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Beta Alpha $36 27 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit $165 $140 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars