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Cane Company manufactures two products called Alpha and Beta that sell for $ 1 5 0 and $ 1 0 5 , respectively. Each product

Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107,000 units of each product. Its average cost per unit for each product at this level of activity is given below
The companys traceable fixed manufacturing overhead is avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars.
USE INFO ABOVE
10.Assume Cane expects to produce and sell 55,000 Alphas during the current year. A supplier offered to manufacture and deliver 55,000 Alphas to Cane for a price of $100 per unit. What is the financial advantage (disadvantage) of buying 55,000 units from the supplier instead of making those units?
11.How many pounds of raw material are needed to make one unit of each of the two products?
12.What contribution margin per pound of raw material is earned by each of the two products?
Note: Round your answers to 2 decimal places.
13. Assume Canes customers would buy a maximum of 85,000 units of Alpha and 65,000 units of Beta. Also assume the raw material available for production is limited to 166,000 pounds. How many units of each product should Cane produce to maximize its profits?
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