Question
13. Assume that Canes customers would buy a maximum of 94,000 units of Alpha and 74,000 units of Beta. Also assume that the raw material
13. Assume that Canes customers would buy a maximum of 94,000 units of Alpha and 74,000 units of Beta. Also assume that the raw material available for production is limited to 228,000 pounds. How many units of each product should Cane produce to maximize its profits?
14. Assume that Canes customers would buy a maximum of 94,000 units of Alpha and 74,000 units of Beta. Also assume that the raw material available for production is limited to 228,000 pounds. What is the total contribution margin Cane Company will earn?
15. Assume that Canes customers would buy a maximum of 94,000 units of Alpha and 74,000 units of Beta. Also assume that the companys raw material available for production is limited to 228,000 pounds. If Cane uses its 228,000 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 $190 and $155, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 122,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta Direct materials $ 40 $24 Direct labor 34 28 Variable manufacturing overhead 21 19 Traceable fixed manufacturing overhead 29 32 Variable selling expenses 26 22 29 24 Common fixed expenses Total cost per unit. $ 179 $149 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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