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:

	Alpha	Beta
Direct materials	$ 40	$ 24
Direct labor	37	30
Variable manufacturing overhead	24	22
Traceable fixed manufacturing overhead	32	35
Variable selling expenses	29	25
Common fixed expenses	32	27
Total cost per unit	$ 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.

12. What contribution margin per pound of raw material is earned by each of the two products? (Round your answers to 2 decimal places.)

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

14. Assume that Canes customers would buy a maximum of 97,000 units of Alpha and 77,000 units of Beta. Also assume that the raw material available for production is limited to 247,000 pounds. What is the total contribution margin Cane Company will earn?

15. Assume that Canes customers would buy a maximum of 97,000 units of Alpha and 77,000 units of Beta. Also assume that the companys 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? (Round your answer to 2 decimal places.)