12 - PT

Cane Company manufactures two products called Alpha and Beta that sell for $155 and $115, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 110,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha $ 24 22 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit $107 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. Foundational 12-13 13. Assume that Cane's customers would buy a maximum of 87,000 units of Alpha and 67,000 units of Beta. Also assume that the company's raw material available for production is limited to 168,000 pounds. How many units of each product should Cane produce to maximize its profits? Alpha Beta Units produced . Assume that Cane's customers would buy a maximum of 87,000 units of Alpha and 67,000 units of Beta. Also assume that the ompany's raw material available for production is limited to 168,000 pounds. What is the maximum contribution margin Cane ompany can earn given the limited quantity of raw materials? Total contribution margin . Assume that Cane's customers would buy a maximum of 87,000 units of Alpha and 67,000 units of Beta. Also assume that the mpany's raw material available for production is limited to 168,000 pounds. If Cane uses its 168,000 pounds of raw materials, up to ow much should it be willing to pay per pound for additional raw materials? (Round your answer to 2 decimal places.) laximum price to be paid per pound