12. What contribution margin per pound of raw material is earned by each of the two products?

Contribution margin per pound: Alpha Beta

13. Assume that Cane's customers would buy a maximum of 97,000 units of Alpha and 77,000 units of Beta. Also assume that the company's raw material available for production is limited to 247,000 pounds. How many units of each product should Cane produce to maximize its profits?

Units produced: Alpha Beta

14. Assume that Cane's customers would buy a maximum of 97,000 units of Alpha and 77,000 units of Beta. Also assume that the company's raw material available for production is limited to 247,000 pounds. What is the maximum contribution margin Came Company can earn given the limited quantity of raw materials?

Total contribution margin:

15. Assume that Cane's customers would buy a maximum of 97,000 units of Alpha and 77,000 units of Beta. Also assume that the company's raw material available for production is limited to 247,000 pounds. If Cane uses its 247,000 pounds of raw materials, up to how much should it be willing to pay per pound for additional raw materials?

Required information [The following information applies to the questions displayed below.) Cane Company manufactures two products called Alpha and Beta that sell for $205 and $164, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 127,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Beta Alpha $ 40 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit 32 194 $163 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