8 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. It average cost per unit for each product at this level of activity are given below Part 4 of 4 s 24 23 s 12 12 23 19 Common fixed Total cost per unit 2217 $107 $133 The company considers its traceable fixed manufacturing overhead to be avoidable, wher are unavoidable and have been allocated to products based on sales dollars. eas its common fixed expenses Required: Constrained Resources Most Profitable Use Decision Print Assome that Cane's customers would buy a maximum of 87000 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. What is the maximum contribution margin Cane Company can earn given the limited quantity of raw materials? Hint- Consider how many pounds of material you used to produce enough units to satisfy the demand for the most profitable product and then multiply the pounds used by the contribution margin per pound of material of the most profitable product. Next consider how many pounds were left to make the other product and multiply the material of the other prduct. Add those amounts together to determine the total contribution margin by the contribution margin per pound of produced of each product and multiply that by Another way to calculate the total contribution is to use the the contribution margin per unit of each product. Add those amounts together to determine the total contribution margin S Prev8 of 8Next