Question
11. How many pounds of raw material are needed to make one unit of each of the two products? Alpha and Beta 13. Assume that
11. How many pounds of raw material are needed to make one unit of each of the two products? Alpha and Beta
13. Assume that Canes customers would buy a maximum of 95,000 units of Alpha and 75,000 units of Beta. Also assume that the raw material available for production is limited to 245,000 pounds. How many units of each product should Cane produce to maximize its profits?
14. Assume that Canes customers would buy a maximum of 95,000 units of Alpha and 75,000 units of Beta. Also assume that the raw material available for production is limited to 245,000 pounds. What is the total contribution margin Cane Company will earn?
15. Assume that Canes customers would buy a maximum of 95,000 units of Alpha and 75,000 units of Beta. Also assume that the companys raw material available for production is limited to 245,000 pounds. If Cane uses its 245,000 pounds of raw materials, up to how much should it be willing to pay per pound for additional raw materials? (Round your answer to 2 decimal places.)
Required information [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $195 and $150, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 123,000 units of each product. Its average cost per unit for each product at this level of activity are given below. 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 dollarsStep by Step Solution
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