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 unit costs for each product at this level of activity are given below:

AlphaBetaDirect materials$40$24Direct labor3730Variable manufacturing overhead2422Traceable fixed manufacturing overhead3235Variable selling expenses2925Common fixed expenses3227Total cost per unit$194$163

The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars.

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 companys 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 companys raw material available for production is limited to 247,000 pounds. What is the maximum contribution margin Cane Company can earn given the limited quantity of raw materials?