Cane Company manufactures two products called Alpha and Beta that sell for $140 and $100, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 106,000 units of each product its unit costs for each product at this level of activity are given below: Alpha Beta Direct materials $32 5 16 Direct labour 24 19 Variable manufacturing overhead 10 9 Traceable fixed manufacturing overhead 20 22 Variable selling expenses 16 12 Common fixed expenses 19 Total cost per unit $123 5 92 14 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 Required: How many pounds of raw material are needed to make one unit of Alpha and one unit of Beta? Alpha Beta Pounds of raw materials per unit We Make Company has traditionally manufactured a number of different standard machine parts. It is now exploring an outsourcing decision for several of the parts that it currently produces. Cost Information for one such machine part is given below. Variable costunit Fixed manufacturing costs (total) Allocated corporate overhead Unit product cost (based on see unita) $ 28.50 4,360.00 6270.00 49.76 Fifty percent of the fixed manufacturing costs are directly traceable to this specific machine part and therefore avoidable. An outside supplier will sell the part at a price of $56 per unit f 500 units are purchased Required: Prepare an analysis whether We Make should continue to manufacture this machine part or whether it should purchase it from the outside supplier (Negative amounts should be indicated by a minus sign. Round "Per Unleto 2 decimal places. 500 units Per Unit Make Buy Difference Purchase Variable cost Foed manufacturing overhead Common con Total costs Should the company make or buy? Make BUY