Cane Company manufactures two products called Alpha and Beta that sell for $165 and $130, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 113,000 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			29				25
Variable manufacturing overhead			15				14
Traceable fixed manufacturing overhead			25				27
Variable selling expenses			21				17
Common fixed expenses			24				19
Total cost per unit		$	154			$	126

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.

1-1. What contribution margin per pound of raw material is earned by each of the two products? (Round your answers to 2 decimal places.) (Alpha / Beta)

1-2. Assume that Canes customers would buy a maximum of 89,000 units of Alpha and 69,000 units of Beta. Also assume that the companys raw material available for production is limited to 220,000 pounds. How many units of each product should Cane produce to maximize its profits? (Alpha / Beta)

2. Assume that Canes customers would buy a maximum of 89,000 units of Alpha and 69,000 units of Beta. Also assume that the companys raw material available for production is limited to 220,000 pounds. What is the maximum contribution margin Cane Company can earn given the limited quantity of raw materials?

3. Assume that Canes customers would buy a maximum of 89,000 units of Alpha and 69,000 units of Beta. Also assume that the companys raw material available for production is limited to 220,000 pounds. If Cane uses its 220,000 pounds of raw materials, up to how much should it be willing to pay per pound for additional raw materials?