Cane Company manufactures two products called Alpha and Beta that sell for $150 and $110, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 108,000 units of each product. Its average cost per unit for each product at this level of activity are given below:

	Alpha	Beta
Direct materials	$ 30	$ 15
Direct labor	26	22
Variable manufacturing overhead	13	11
Traceable fixed manufacturing overhead	22	24
Variable selling expenses	18	14
Common fixed expenses	21	16
Total cost per unit	$ 130	$ 102

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 13-12 (Algo)

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